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“Comprehensive Study of the<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong>”<br />

The<br />

Major<br />

<strong>Market</strong>s<br />

Conducted by <strong>JBC</strong> International<br />

On Behalf of <strong>Wine</strong> Institute<br />

Contact: James B. Clawson<br />

Jessica Burns<br />

Darren Arnold<br />

<strong>JBC</strong> International<br />

111 Rockville Pike, Suite 410<br />

Rockville, M.D. 20850<br />

www.jbcinternational.com<br />

The<br />

<strong>Wine</strong>growing<br />

Regions


1<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Date: June <strong>2011</strong><br />

<strong>EMP</strong> Project <strong>Report</strong> #E09MXBR001<br />

<strong>Brazil</strong> – <strong>Wine</strong> “Comprehensive Study of <strong>Market</strong> Potential, Infrastructure, and Regulatory<br />

Policy for U.S. <strong>Wine</strong> Exports to <strong>Brazil</strong>”<br />

<strong>Report</strong> Highlights:<br />

<strong>Brazil</strong> provides both tremendous opportunities and challenges for U.S. wine exporters.<br />

Historically wine consumption per capita trails that of other beverage alcohol. The recent<br />

economic expansion has developed a strong middle class more interested in wine. An<br />

emergent domestic wine industry is introducing more <strong>Brazil</strong>ians to wine varieties through<br />

greater distribution and promotion. The neighboring wine producers, Chile and Argentina,<br />

are also enjoying sales increases demonstrating the appetite of the new wine consumer for<br />

New World wines. The distribution and retailing channels are in place in the main population<br />

centers although still often cumbersome and inefficient. The complex panoply of import<br />

regulations and high taxes are not unlike those of other emerging markets such as India,<br />

China and Russia. As <strong>Brazil</strong> continues to develop its international economy, now the 7 th<br />

largest in the world, it is investing in the infrastructure to improve its capacity to trade<br />

internationally. With the hosting of the 2014 FIFA World Cup and the 2016 Olympics, and<br />

following the Chinese example of hosting the 2008 Olympics, the <strong>Brazil</strong>ian government must<br />

insure that its capacity and infrastructure will meet the demands of those events. <strong>Brazil</strong>ian<br />

goods and services industries must be ready to accommodate over 1 million visitors for those<br />

two events. While many impediments to U.S. wine exports remain, the country with a<br />

population of over 200 million and half of those with disposable income presents a vast and<br />

largely untapped market for U.S. winemakers.


Table of Contents<br />

2<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

<strong>Report</strong> Highlights ........................................................................................................ 1<br />

Table of Contents........................................................................................................ 2<br />

Executive Summary .................................................................................................... 3<br />

Project Background ..................................................................................................... 4<br />

State of the <strong>Brazil</strong>ian Economy ..................................................................................... 4<br />

Strategy for <strong>Market</strong> Entry ............................................................................................ 6<br />

Geography and Domestic <strong>Wine</strong> Production ..................................................................... 8<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> ............................................................................................... 12<br />

U.S. <strong>Wine</strong>s in <strong>Brazil</strong> .................................................................................................. 16<br />

Effect of <strong>Brazil</strong>ian Trade Policy on Imported <strong>Wine</strong> .......................................................... 17<br />

Consumption Analysis ............................................................................................... 18<br />

<strong>Brazil</strong> Trade <strong>Report</strong> ................................................................................................... 21<br />

Import Procedures .................................................................................................... 22<br />

<strong>Market</strong>ing Analysis .................................................................................................... 25<br />

<strong>Brazil</strong>ian <strong>Wine</strong> Importers ........................................................................................... 26<br />

Relevant Contacts ..................................................................................................... 32<br />

Acknowledgments .................................................................................................... 35<br />

Appendices .............................................................................................................. 36


Executive Summary<br />

3<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

As a member of the BRIC countries, <strong>Brazil</strong> is a target market for increasing U.S. wine<br />

exports. BRIC is a grouping acronym that refers to the countries of <strong>Brazil</strong>, Russia, India and<br />

China, which are all deemed to be at a similar stage of newly advanced economic<br />

development. The acronym has come into widespread use as a symbol of the shift in global<br />

economic power away from the developed G7 economies towards the developing world. The<br />

BRIC economies are promising engines of global economic growth and development. For the<br />

first time, helped along by the “Great Recession,” consumers from the BRIC emerging<br />

markets are outspending U.S. consumers. With real wages on the rise and middle classes<br />

forming, emerging market consumers now account for 34 percent of global consumption<br />

versus 27 percent for their U.S. counterparts. Families around the developing world now<br />

have disposable income. Instead of saving their newfound wealth, they are increasingly<br />

spending and putting money back into the local economy.<br />

A U.S.-based multinational such as Coca-Cola generates three-quarters of its sales overseas<br />

and already reflects the new reality. Revenues are booming for Coke in places like China and<br />

<strong>Brazil</strong>. For <strong>Brazil</strong>, Claudia Penteado of AdvertisingAge explains: “Much of <strong>Brazil</strong>’s explosive<br />

growth is being fueled by an emerging lower middle class that has grown to 95.4 million<br />

people. As they snap up cars, cell phones and new homes, this group is quickly becoming a<br />

prime target for marketers. The group, called the Class C, earns between $600 and $2,600 a<br />

month and, through upward mobility in a growing economy, has become <strong>Brazil</strong>’s largest<br />

consumer group in a population of 200 million people.”<br />

Recent data on BRIC countries’ consumer spending habits reveal interesting insights about<br />

consumer behavior and priorities in emerging markets. <strong>Brazil</strong>ians put a higher priority on<br />

living for the present by devoting a considerably larger share of income to discretionary<br />

spending. <strong>Brazil</strong>ians report saving a relatively modest 10 percent, the lowest level of the<br />

four BRIC countries.<br />

Per capita wine consumption lags considerably behind its neighbors Argentina and Chile.<br />

<strong>Wine</strong> has not been the alcoholic beverage of choice for <strong>Brazil</strong>ian consumers. Those<br />

preferences are beginning to change with the new found disposable income of the emerging<br />

middle class who are willing to try new products, including wine. The elements are in place<br />

for significant growth in wine consumption over the next ten years.<br />

The <strong>Brazil</strong>ian market has been difficult to penetrate for all consumer goods. Previous<br />

government policy has supported exports and restricted imports to maintain and increase its<br />

foreign exchange. With the new-found wealth and balance of payments surplus those<br />

policies are changing. While still difficult to navigate, the labyrinth of import regulations,<br />

congestion in customs clearance processes and multiple taxes have become more<br />

transparent. This report describes many of those challenges and provides advice to achieve<br />

compliance.<br />

Hosting of the 2014 FIFA World Cup and the 2016 Olympics will bring tens of thousands of<br />

foreign visitors to <strong>Brazil</strong>’s event venues. Such events engender a social environment<br />

conducive to on-premise wine consumption. As described in this study, the distribution and


4<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

consumption patterns of wine are also evolving for the benefit of sales. More retail outlets<br />

are growing their listings with a wider selection including New World such as those from the<br />

United States. Mass retailers like Wal-Mart and Carrefour are becoming significant<br />

opportunities for the sale of imported wine.<br />

<strong>Brazil</strong> is still a developing country. Lack of capacity, corruption and legacy policies must be<br />

carefully considered. President Obama’s recent visit and the priority the U.S. has devoted to<br />

its relationship with <strong>Brazil</strong> should assist in limiting the negative images and difficulties of the<br />

past. <strong>Brazil</strong> is a market that should be seriously considered for any winery looking to expand<br />

its export portfolio.<br />

Project Background<br />

In October 2009, <strong>JBC</strong> International—as <strong>Wine</strong> Institute’s International Trade Counsel<br />

undertook to execute a U.S. Department of Agriculture, Emerging <strong>Market</strong>s Project (USDA-<br />

<strong>EMP</strong>) titled #E09MXBR001, a “Comprehensive Survey of the <strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong>.” This<br />

project represents a collaborative effort between <strong>Wine</strong> Institute and USDA-<strong>EMP</strong> that was<br />

designed to address the interest voiced by many <strong>California</strong>n wineries to understand and<br />

identify strategies for expanding business opportunities into the BRIC countries, <strong>Brazil</strong>,<br />

Russia, India and China. <strong>JBC</strong> has completed previous studies of India and Russia.<br />

The prime objective and focus of this study has been to provide practical information needed<br />

to develop a strategy for market entry, one which exposes the risks, provides a guide to<br />

developing that strategy and outlines the potential rewards for U.S. wine exports to <strong>Brazil</strong>.<br />

This report serves as a critical educational resource for U.S. companies by:<br />

1. Providing detailed information concerning:<br />

- The economic environment for consumers to purchase wine;<br />

- The regulatory environment for wines in <strong>Brazil</strong>;<br />

- The existing trade barriers restricting wine imports from the United States;<br />

and,<br />

- The identification of the challenges and strategies for entering the market and<br />

selling wines in <strong>Brazil</strong>.<br />

2. Forecasting developments in <strong>Brazil</strong>’s wine market, supply chain and distribution<br />

network and trade activities; and,<br />

3. <strong>Report</strong>ing on where the market opportunities exist for imported wine by specific<br />

market, supply chain, importer and distributor throughout the country.<br />

The State of the <strong>Brazil</strong>ian Economy<br />

A combination of increased domestic and foreign demand for <strong>Brazil</strong>ian products led to<br />

considerable growth in the <strong>Brazil</strong>ian economy since the early 2000s. While the <strong>Brazil</strong>ian<br />

government has traditionally had problems with inflation, President Dilma Rousseff is<br />

committed to inflation targeting by the Central Bank. Under Rousseff, the government has<br />

focused on fiscal restraint, a floating exchange rate and adhered to a policy for sustainable<br />

growth through foreign trade. This has led to significant improvements in the stability of


5<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

<strong>Brazil</strong>’s economy. <strong>Brazil</strong> has paid off all debt to the International Monetary Fund, which in<br />

2005 totaled $15.5 million. The Real has gained 40 percent against the US dollar since<br />

2009, amid huge economic growth and a rise in foreign investment.<br />

<strong>Brazil</strong> experienced two quarters of recession beginning in the latter half of the economic<br />

crisis and is considered one of the fastest economies to recover due to high investor and<br />

consumer confidence. Heavy involvement in international trade has made <strong>Brazil</strong> a leading<br />

economy in South America. Domestic consumption has been growing as wages and access<br />

to credit have improved. The <strong>Brazil</strong>ian labor force has seen an increase and in 2010 ranks<br />

six in the world with 103.6 million working citizens.<br />

“The 2010 growth rates demonstrate that the <strong>Brazil</strong>ian economy is growing at a significant<br />

and sustainable pace, which supports the country's plans for<br />

long-term investment projects,” finance minister Guido<br />

Population Indicators - <strong>Brazil</strong><br />

currently has the 5 th largest<br />

population in the world with<br />

203,429,773 citizens. The<br />

population between 15-64 years is<br />

66.8 percent, with a median age of<br />

28.9. Currently, <strong>Brazil</strong>’s drinking<br />

age is 18, which proves a sizable<br />

market for alcohol. There are more<br />

females than males: 98 percent<br />

male/female ratio. <strong>Brazil</strong>’s<br />

population is 74 percent Roman<br />

Catholic, and 86 percent of the<br />

population is located in urban<br />

areas. 1 A study conducted by the<br />

<strong>Brazil</strong>ian <strong>Wine</strong> Institute (IBRAVIN)<br />

shows demand for New World<br />

wines is growing with the consumer<br />

age group of 40 and above. Such<br />

persons are interested in<br />

purchasing higher quality wines<br />

they read about or are presented in<br />

the media.<br />

Mantega said. “We expect GDP to grow around 4.5 to 5.0<br />

percent in <strong>2011</strong>, a rate that would be sustainable and<br />

generate no inflationary pressures,” he added. Growth was<br />

led by industry which saw an expansion of 10.1 percent,<br />

agriculture growing 6.5 percent, and the services sector,<br />

which saw growth of 5.4 percent. <strong>Brazil</strong>'s GDP outstripped<br />

Mexico's. <strong>Brazil</strong>’s Gross National Income (GNI) per capita in<br />

2009 was $8,070 USD 1 .<br />

Industries<br />

<strong>Brazil</strong>’s largest industries are textiles, shoes, chemicals,<br />

cement, lumber, iron ore, steel, aircraft, motor vehicles and<br />

other machinery and equipment, in that order. The industrial<br />

production growth rate was 11.5 percent for 2010. <strong>Brazil</strong>’s<br />

main agricultural production includes: meat and by-products,<br />

coffee, soybeans, wheat, rice, corn, sugarcane, cocoa and<br />

citrus. <strong>Brazil</strong> is the 9 th largest oil producer in the world and the<br />

7 th largest consumer. Oil exports reached over 570,100<br />

bbl/day 2 in 2010.<br />

A quick economic recovery can be attributed to <strong>Brazil</strong>’s welldeveloped<br />

industry sectors. The breakdown of <strong>Brazil</strong>’s Gross<br />

Domestic Product by composition sector is as follows: agriculture: 6.1 percent; industry:<br />

26.4 percent; services: 67.5 percent. The <strong>Brazil</strong>ian Food Processors’ Association (ABIA)<br />

announced food and beverage industries of <strong>Brazil</strong> made up 85 percent and 15 percent of the<br />

$173 billion (USD) total net revenue in 2009, respectively. ABIA estimated a 5.3 percent<br />

volume increase in 2010 with 4.0 to 4.5 percent growth estimates per year over the next<br />

five years. This growth estimate is above the 3.3 percent average for the past ten years.<br />

The food processing industry consists of 38,500 companies including Nestle, Kraft, Unilever,<br />

etc.<br />

1 Doing Business <strong>2011</strong> in <strong>Brazil</strong>, The World Bank<br />

2 https://www.cia.gov/library/publications/the-world-factbook/geos/br.html


Infrastructure<br />

6<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

As host to the 2014 FIFA World Cup and the 2016 Summer Olympics, <strong>Brazil</strong> has seen its<br />

infrastructure under constant scrutiny in recent years. <strong>Brazil</strong> has 4,000 airports, the second<br />

most in the world behind only the United States. <strong>Brazil</strong> also has 28,857 km of railways (10 th<br />

in the world), 1,751,868 km of roads (4 th in the world) and 50,000 km of waterways (3rd in<br />

the world). While these statistics appear promising, much of the current infrastructure is<br />

underdeveloped or poorly maintained. For example, 82 percent of its roads are unpaved,<br />

many port facilities are outdated and many of the airports are too small or too crowded for<br />

business. All of these factors increase transportation costs. While the infrastructure in the<br />

less developed center of the country is insufficient because it is underdeveloped, the<br />

infrastructure in the more populated cities is inadequate because it is overcrowded.<br />

In 2007, the <strong>Brazil</strong>ian government took on an accelerated growth project, PAC, to increase<br />

the economic welfare of the country and to develop the infrastructure to address the current<br />

problems, in preparation for the upcoming games and the future increase in commerce and<br />

tourism. This has put infrastructure on the forefront of <strong>Brazil</strong>ian politics. The program will<br />

invest significant resources in seaports, airports, roads and railways. The program should<br />

drastically facilitate the movement of goods throughout the country in the upcoming years.<br />

The major ports and terminals of <strong>Brazil</strong> are Guaiba, Ilha Grande, Paranagua, Rio Grande,<br />

Santos, Sao Sebastiao, Salvador, and Tubarao. Santon, the main port of São Paulo, is the<br />

largest port in South America. The largest airport in <strong>Brazil</strong> is Guarulhos International in São<br />

Paulo.<br />

Strategy for <strong>Market</strong> Entry<br />

Research the <strong>Market</strong><br />

Using this report and relevant contacts (in both the U.S. and <strong>Brazil</strong>) as initial resources,<br />

prospective exporters can make informed decisions about export opportunities to <strong>Brazil</strong>.<br />

Members of the <strong>Wine</strong> Institute international program can contact that department for further<br />

information on the market and opportunities to participate in trade shows. Members of<br />

<strong>Wine</strong>America can contact their offices and the authors of this study to further investigate<br />

market opportunities. Likewise, members of the <strong>California</strong> Association of <strong>Wine</strong>grape Growers,<br />

<strong>Wine</strong>grape Growers of America, and the general public can contact <strong>JBC</strong> International and<br />

other entities listed in the “Relevant Contacts” section of this study.<br />

Find an Importer/Distributor<br />

The choice of which importer and distributor to work with in <strong>Brazil</strong> is a crucial decision for<br />

U.S. wineries and exporters, since these agents will function as product line representatives<br />

and facilitate many of the market intricacies, such as navigating the regulatory import<br />

requirements and distribution chains. Depending on the agent and the expectations of the<br />

winery, it can assist in marketing the product and ensuring its quality integrity. Many of the


7<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

importers in the “<strong>Brazil</strong>ian <strong>Wine</strong> Importers” section found at the end of this report are also<br />

distributors with either a wine boutique or a retail store location.<br />

Arrange <strong>Market</strong> Strategy and Fulfill Compliance Needs<br />

U.S. wineries that are successful in exports usually take one to two trips to the target<br />

country before making sales. The first visit is used to research and develop strategies for<br />

accessing the target markets, whether regional or sector-based (hotels, restaurants or<br />

retail). The same visit can be used to meet with importers in order to evaluate their<br />

operations before making a decision on whom to approach with a potential agreement. If<br />

necessary, the exporter will travel back a second time to finalize the arrangements with the<br />

selected importer/distributor and ensure that both they and the importer/distributor are<br />

ready to do business together. This step is oftentimes needed to ensure that all regulatory<br />

approval issues and import processes are addressed before orders can be solicited and<br />

subsequently fulfilled.<br />

Continue <strong>Market</strong> Promotion and Research<br />

The growing market opportunities in <strong>Brazil</strong> for U.S. wine exporters are primarily in the South<br />

and Southeast regions of Rio Grande do Sul and São Paulo; also major production regions.<br />

For wineries that are members of the <strong>Wine</strong> Institute International Program (based in San<br />

Francisco, CA), they can coordinate trade visits and market promotion with a group of<br />

participants. Additionally, representatives of USDA’s Foreign Agricultural Service (FAS) in<br />

<strong>Brazil</strong> share a common mission to promote trade with the United States. Representatives of<br />

USDA’s Office of Agricultural Affairs (OAA), headquartered at the U.S. Embassy in Brasília as<br />

well as those of USDA’s Agricultural Trade Office (ATO) at the U.S. Consulate General in São<br />

Paulo can offer free assistance with understanding the market and identifying future business<br />

opportunities. The FAS representatives can help U.S. wine exporters by supplying them with<br />

up-to-date market information, importer lists, and distributor data, as well as by endorsing<br />

U.S. Pavilions at trade shows and organizing various marketing events. The U.S. Alcohol and<br />

Tobacco Tax and Trade Bureau (TTB) has an International Trade Division and website<br />

(www.ttb.gov) that can similarly assist U.S. wineries and exporters with market information<br />

and regulatory compliance issues.<br />

Potential Risks<br />

There are several risks present when attempting to<br />

enter the <strong>Brazil</strong>ian marketplace. These include:<br />

a) Uncertainty of government regulations. Over<br />

the past two years, the <strong>Brazil</strong>ian Government<br />

has issued multiple regulations concerning wine<br />

producer registration, labeling and production<br />

processes. Most are implemented without<br />

advance notice and in the case of the<br />

production processes; no final rules have been<br />

published.<br />

b) Domestic and imported wine competition. <strong>Brazil</strong><br />

NOTE: AS OF THE PREPARATION OF THIS<br />

REPORT, REGULATIONS CONCERNING<br />

WINEMAKING PRACTICES WERE BEING<br />

REVISED. NO FINAL RULE ON SUCH<br />

PRACTICES HAS BEEN PUBLISHED BY THE<br />

BRAZILIAN GOVERNMENT. THIS REPORT<br />

WAS DELAYED FOR SIX MONTHS<br />

EXPECTING NEW RULES TO BE<br />

AVAILABLE. THE AUTHORS RECOMMEND<br />

PRIOR TO SHIPMENT OF WINE TO BRAZIL<br />

THAT THE EXPORTER VERIFY WHAT<br />

REGULATIONS ARE IN PLACE.


8<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

currently supplies much of the wine consumed within the country. The remainder is<br />

split between Chile and Argentina both enjoying trade tariff preferences and the<br />

European Union that subsidizes exports and production.<br />

c) Customs inconsistencies. As noted later in this report there are many border<br />

formalities necessary for the importation of goods. Those formalities are not<br />

consistently administered by the different ports of entry. It is recommended that an<br />

advanced ruling be requested from customs if the importer is not confident as to the<br />

classification, value and tax treatment of the wine.<br />

d) Other potential risks include current issues with contraband wine products that cross<br />

the border illegally, especially along the Southern border with Paraguay. These<br />

products reach the market at an unfair advantage; with costs lower than other<br />

importers can match.<br />

e) Potential new legislation to control alcohol abuse is also being considered.<br />

Geography and Domestic <strong>Wine</strong> Production<br />

Climate and Topography<br />

It is in the southern region of <strong>Brazil</strong>, with high temperatures during the day and cool low<br />

temperatures at night that is responsible for the quality and wide variety of grapes.<br />

Primarily, grape and wine production are centered in the Serra Gaucho Mountains located<br />

parallel 29° with average temperatures between 12°C in the winter months and 22°C during<br />

the summer. These mountains include the<br />

sub-region of Vale dos Vinhedos, <strong>Brazil</strong>’s first<br />

Geographical Indication. Production marches<br />

down from the mountains to the southern<br />

valleys. The southernmost state of Rio<br />

Grande do Sul produces over 55 percent of<br />

national grape production. Other well known<br />

wine producing regions of <strong>Brazil</strong> include the<br />

states of São Paulo, Paraná, Santa Catarina,<br />

Pernambuco and newly discovered Minas<br />

Gerais.<br />

<strong>Brazil</strong>ian <strong>Wine</strong>ry Miolo, photo by Lethaargic/Flickr<br />

Vale do São Francisco<br />

The tropical state of Vale do São Francisco<br />

resides at 9° south latitude and with its dry<br />

climate makes it the only wine producing region<br />

requiring irrigation. The alkaline soil along with<br />

the climate conditions produces low yield<br />

grapes with high sugar levels. Producers in this<br />

region can harvest grapes two times a year.


WINE GRAPE PRODUCTION AREAS<br />

Source: <strong>Brazil</strong>ian <strong>Wine</strong> Institute (IBRAVIN)<br />

9<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

The subtropical southern regions presents prime viticulture climate. <strong>Brazil</strong>’s high quality<br />

sparkling wines are a result of the appropriate soil and weather patterns. However, wide<br />

climatic variations in grape producing regions caused more than a 15 percent decrease in<br />

overall grape production volume between the years of 2007 and 2009 and another 3.74<br />

percent decrease in 2010.<br />

Northern Region Potential<br />

According to the <strong>Brazil</strong>ian Agriculture Research Center (<strong>EMP</strong>RAPA), there is high climatic<br />

potential for grape production in the northeast region of <strong>Brazil</strong>. Fine table grapes were<br />

introduced in the 20 th Century by the Italians and grown in the northeast Vale do São<br />

Francisco. Tonietto & Carbonneau 3 developed the Multicriteria Climatic Classification System<br />

(MCC System) on three regions of the northeast state of Minas Gerais over the course of two<br />

production cycles: October to March (spring-summer) and April to September (autumnwinter).<br />

The results showed all three regions to present unlimited grape-growing<br />

possibilities. The autumn-winter period presented two of the regions as moderately dry,<br />

warm and with temperate nights and the third region’s climatic condition as sub-humid,<br />

temperate and with cool nights. It would be no surprise to see a substantial growth in grape<br />

production in northern <strong>Brazil</strong>.<br />

3 TONIETTO, J.; CARBONNEAU, A. A multi-criteria climatic classification system for grapegrowing<br />

regions worldwide. Agricultural and Forest Meteorology, Amsterdam, v.124, p.81-<br />

97, 2004.


Government Production Policy<br />

10<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

<strong>Brazil</strong> is fervently looking to wine production as a cash crop for their agriculture sector.<br />

According to the <strong>Brazil</strong>ian Institute of Geography and Statistics (IBGE) 2010 data, total<br />

vineyards planted in <strong>Brazil</strong> reached 83.718 hectares in 2010 up from 82.584 hectares in<br />

2009. In 1875 Bento Gonçalves, a town in Rio Grande do Sul, received Italian immigrants<br />

producing mostly American and hybrid grapes, more robust than vinfera varieties. The<br />

Italian arrival marked the beginning of expansion for <strong>Brazil</strong>’s <strong>Wine</strong> Industry. Today, Bento<br />

Gonçalves is considered the “<strong>Wine</strong> Capital of <strong>Brazil</strong>” primarily producing Cabernet Sauvignon,<br />

Cabernet Franc, Sauvignon Blanc and Merlot. In recent years, wine production in <strong>Brazil</strong> has<br />

generated greater wealth and employment, with the increase in grape growers and large<br />

wine processors. In the 1970’s, a multinational group of wine producers arrived in Rio<br />

Grande do Sul bringing with them modern wine-processing technology and planting new<br />

vinifera varieties although non-vinifera grapes still account for 80 percent of production.<br />

Isabella is the predominant non-vinifera grape and its juice production is an important<br />

export. In <strong>Brazil</strong>, table wine refers to non-vinifera and fine wine is the recently planted<br />

vinifera.<br />

Today <strong>Brazil</strong> is the 5 th largest wine producer in the Southern hemisphere with 320 million<br />

liters. Production in <strong>Brazil</strong> is highly concentrated in the southeast states. The state of Rio<br />

Grande do Sul alone accounts for 54 percent of all <strong>Brazil</strong>ian wine grapes produced. While<br />

there was an increase in vineyard planted areas in 2010, a combination of the global<br />

economic crisis and a poor harvest led to a 3.74 percent decrease in <strong>Brazil</strong>ian grape<br />

production when compared to 2009.<br />

Grapes production in <strong>Brazil</strong> (in tons)<br />

State/Year 2007 2008 2009 2010<br />

Pernambuco 170,326 162,977 158,515 168,225<br />

Bahia 120,654 101,787 90,508 78,283<br />

Minas Gerais 11,995 13,711 11,773 10,590<br />

São Paulo 193,023 184,930 177,934 177,538<br />

Paraná 99,180 101,500 102,080 101,900<br />

Santa Catarina 54,554 58,330 67,546 66,214<br />

Rio Grande do Sul 705,228 776,027 737,363 692,692<br />

<strong>Brazil</strong> 1,354,960 1,399,262 1,345,719 1,295,442<br />

Source: IBGE (<strong>Brazil</strong>ian Institute of Geography and Statistics)<br />

The table above illustrates the largest decrease in production took place in the Vale do São<br />

Francisco (Bahia state): 13.51 percent decrease from 2009, followed by Minias Gerais: 10.05<br />

percent decrease. The major wine producing region of Rio Grande do Sul realized a 6.06<br />

percent decrease in production.<br />

Presently in <strong>2011</strong>, climate issues are leading to an increase in grape production. Grape<br />

growers and wine producers have invested heavily in the industry, which has led to<br />

increased quality and efficiency in production. <strong>Brazil</strong>ian wine tends to be fresh and fruity<br />

with moderate to high alcohol content. The main grape varieties include Cabernet<br />

Sauvignon, Merlot, Moscato and Chardonnay (source: EMBRAPA). Because of its high quality


11<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

and growing popularity, there was a 10.73 percent growth in sales for sparkling wine in<br />

2010. Muscat sparkling wine saw a 16.71 percent increase in sales in the same year.<br />

Major <strong>Wine</strong>ries<br />

The major players and their production volumes are as follows:<br />

Domestic <strong>Wine</strong> Producers (2009)<br />

Million<br />

Liters<br />

Casa Di Conti Ltda 19.4<br />

Cooperativa Vinícola Aurora Ltda 17.6<br />

Vinhos Salton SA Indústria e Comércio 13.0<br />

Bacardi-Martini do Brasil Indústria e Comércio Ltda 10.3<br />

Vinícola Miolo Ltda 7.4<br />

All Others 256.7<br />

Total 324.3<br />

Source: Euromonitor<br />

The top five leading wine producers share 20 percent of the total wine production in <strong>Brazil</strong>.<br />

The top producer, Casa Di Conti Ltda, maintains a six percent share of the market.<br />

Domestic <strong>Wine</strong> Producers<br />

Casa Di Conti Ltda<br />

Estimated Production: 19.4 Million Liters<br />

Casa Di Conti has been in the market since 1947. It began making liquors, but has reached<br />

its level of success producing Vermouth. Its products have gained notoriety throughout Latin<br />

America. The company is located in the city of Cândido Mota, in the countryside of São Paulo,<br />

with an industrial area of 135.000 m². The company is dedicated to customer satisfaction<br />

and social responsibility. http://www.contini.com.br/1.0/ing/<br />

Cooperativa Vinícola Aurora Ltda<br />

Estimated Production 17.6 Million Liters<br />

On February 14, 1931, sixteen families of grape growers in the municipality of Bento<br />

Gonçalves, in the southern mountains, met to lay the cornerstone of what would become the<br />

biggest enterprise of its kind in <strong>Brazil</strong>: The AURORA COOPERATIVE WINE. Aurora has been<br />

producing grapes much the same way as the Italian immigrants who originally settled in the<br />

region in 1875. From 1998 to 2007, Aurora has won over 200 awards, all with the seal of the<br />

OIV. http://www.vinicolaaurora.com.br/default.asp<br />

Vinhos Salton SA Indústria e Comércio<br />

Estimated Production: 13 Million Liters<br />

The company was formally established in 1910, when brothers Paul, Angelo, John, Cesar,<br />

Luiz Antonio and Salton, incorporated the work of their father, Antonio Domenico Salton, an<br />

immigrant who vinified informally, like most Italians in the region. The brothers began to<br />

engage in the cultivation of grapes and the making of wines, sparkling wines and vermouth,<br />

with the name Paul Salton & Brothers, the Center for Bento. Nearly a century later, Salton is


12<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

recognized as one of the major wineries in the country and celebrates being familiar and 100<br />

percent <strong>Brazil</strong>ian. http://www.salton.com.br/novo/home.aspx<br />

Bacardi-Martini do Brasil Indústria e Comércio Ltda<br />

Estimated Production: 10.3 Liters<br />

Vinícola Miolo Ltda<br />

Estimated Production: 7.4 Million Liters<br />

The winery began producing bulk wine for sale in 1989 and started bottling with a family<br />

name in 1994. The company faced growing demand and was forced to develop a plan to<br />

sustain the growth. The Miolo <strong>Wine</strong> Group was established in 2006 to assemble a line of<br />

more than 70 products from national and international partnerships. The group’s goal was to<br />

formulate a line of products with a variety of qualities that can reach many different<br />

segments. The group today has eight projects: Vinícola Miolo (Vale dos Vinhedos, RS),<br />

Fortaleza do Seival Vineyards (Campanha Gaúcha, RS), RAR (Campos de Cima da Serra,<br />

RS), Lovara Vinhos finos (Serra Gaúcha, RS), Fazenda Ouro Verde (Vale do São Francisco,<br />

BA), Costa Pacifico (Chile), Osborne (Spain and Portugal) and Los Nevados (Argentina).<br />

http://www.miolo.com.br/en/company/miolo_wine_group/<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong><br />

Highlights<br />

With over 203 million citizens and a 2010 GDP of over $2 trillion,<br />

<strong>Brazil</strong> is truly a sizable market. Since 2003, <strong>Brazil</strong>’s economy has<br />

grown increasingly stable through a commitment to fiscal<br />

responsibility by building up foreign reserves, reducing its debt<br />

profile and adhering to an inflation target. <strong>Brazil</strong>’s debt was<br />

granted investment grade status but like many of the world’s<br />

economies, <strong>Brazil</strong> suffered during the recent economic crisis with<br />

a decline in global demand for <strong>Brazil</strong>ian goods. The economy grew by 7.5 percent, a rate<br />

unmatched since 1986. Since the currency started 2010 strong and ended it stronger, a<br />

GDP of 3.675 trillion Reals converted at the year’s average exchange rate into US $2.089<br />

trillion. This meant that <strong>Brazil</strong> overtook Italy to rank as the world’s seventh-biggest<br />

economy. Income per head in <strong>Brazil</strong> has surpassed that in Mexico.<br />

The <strong>Brazil</strong>ian consumers have led the way to economic expansion, as the growing middle<br />

class stocks up on status symbols and domestic comforts once out of their reach. The export<br />

recovery has stimulated lower unemployment rates, higher monthly incomes and an overall<br />

rise in the middle class. All of these factors contribute to larger expendable incomes. As the<br />

home to the 2014 World Cup and the 2016 Summer Olympics, it is expected that increased<br />

interest and investment by the government to accommodate those international events will<br />

lead to further economic growth and greater consumer demand.<br />

Consumers are loyal to brands; including the low income population. More well-off<br />

consumers pay particular attention to quality, after-sales service and the company's social<br />

commitment (protection of the environment, sanitary standards, etc.) National pride is<br />

reflected in consumer habits, but <strong>Brazil</strong>ians remain attached to foreign products as exterior<br />

signs of wealth (technological equipment, American sports brands, etc.) Consumption


13<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

among the majority of the population is turned towards food and housing. The <strong>Brazil</strong>ian<br />

consumer is more demanding and selective. He is aware of quality, the price of goods and<br />

special offers. <strong>Brazil</strong> is a dual economy, in which the upper classes distinguish themselves by<br />

consumption close to that of the United States and Europe, while the poorer people have to<br />

be careful with prices and buy almost exclusively on the unofficial market. Access to credit<br />

is increasing, especially among the middle classes and in spite of some of the highest<br />

interest rates in the world. Everything is bought on credit: real estate, household appliances<br />

and brand name clothes. Many shops offer to spread payments over a period of time,<br />

sometimes without charging interest. 4<br />

While it is only natural that wine exporters would like to tap into the <strong>Brazil</strong>ian economy, there<br />

are a variety of barriers. The <strong>Brazil</strong>ian government currently has both tariff and non-tariff<br />

barriers that are not easily overcome. Furthermore, as a result of the advantages of free<br />

trade agreements, Chile and Argentina have been able to export at substantially lower costs,<br />

and as of 2010, together comprise over 57 percent of all wine imports. Consumers, however,<br />

are open to emerging trends, which may represent an opportunity for the U.S. to move up<br />

from its current status as the 10 th largest wine exporter to <strong>Brazil</strong>, importing $1,415,977 in<br />

2010 under Harmonized Code 2204- <strong>Wine</strong>s of Fresh Grapes 5 .<br />

Euro Monitor reports: that alcoholic drinks experienced strong growth in 2010 driven by the good<br />

performance of all sectors, in particular beer, which accounts for some 87% of overall volume sales.<br />

Beer benefited from increasing disposable incomes among lower-income brackets and steady<br />

unemployment rates combined with the consumer interest in the FIFA World Cup held in South Africa<br />

boosted sales in June and <strong>July</strong>, a period of the year when demand is typically lower compared to the<br />

summer season.<br />

Growing Investments in Premium Alcoholic Drinks<br />

With improvement in the purchasing power of most <strong>Brazil</strong>ians, growing demand for higher quality<br />

products was evident over the review period. As a result, alcoholic drinks manufacturers invested in<br />

expanding their portfolios with premium products such as Cervejarias Kaiser do Brasil which<br />

introduced Amstel Pulse (Netherlands), Birra Moretti (Italy), Edelweiss (Austria), Murphy’s Irish Stout<br />

and Murphy’s Irish Red (Ireland) in early 2010 and Cervejaria Petrópolis, which partnered with a<br />

German brewery to produce and distribute Weltenburger beer locally. In addition, growing sales of<br />

premium brands such as Absolut, Wyborowa and Stolichnaya were evident in vodka, and Ypióca Gold<br />

and artisanal products in cachaça.<br />

Ambev Continues To Grow In 2010<br />

AmBev (Cia Brasileira de Bebidas) is the outright leader in alcoholic drinks due to its leading position<br />

in beer. The company has a wide portfolio of beer in the standard and premium segments and it<br />

continued to experience growth in 2010 despite the acquisition of Cervejarias Kaiser do Brasil by<br />

Heineken and strong investments of Schincariol Participações e Representações and Cervejaria<br />

Petrópolis in expanding their portfolios with Devassa (Schincariol) and Petra and Weltenburger<br />

(Cervejaria Petrópolis).<br />

4 www.laposte-export-solutions.co.uk/uk<br />

5 http://www.gtis.com/gta/secure/gateway.cfm


Shift to Off-Trade Spurs Sales In Supermarkets/Hypermarkets<br />

14<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

The shift in consumption of alcoholic drinks from the on-trade to off-trade channels was very positive<br />

for supermarkets and hypermarkets which increased shelf space given over to alcoholic drinks,<br />

particularly beer. Additionally, investment by manufacturers in diversifying packaging sizes of beers<br />

such as 1-litre glass bottles, 473ml/269ml/210ml metal beverage cans and 5-litre kegs to cater to<br />

consumers’ different needs also contributed to spur sales in grocery retailers.<br />

Optimistic Outlook for Alcoholic Drinks<br />

Alcoholic drinks is expected to show significant growth over the forecast period as disposable incomes<br />

will continue to improve among socioeconomic groups 6 C, D and E and unemployment rates will<br />

remain steady. Beer will continue to sustain growth of alcoholic drinks in the near future but it is<br />

estimated that wine, driven by still light grape wine and sparkling wine, and spirits such as whiskies<br />

and vodka will experience strong growth from 2010 to 2015 as <strong>Brazil</strong>ian consumers expand their<br />

consumption habits in alcoholic drinks. 7<br />

Economical Segments 2008<br />

Source: http://www.propertybrazil.com/news/the-emerging-middle-class-in-brazil-25<br />

6<br />

The <strong>Brazil</strong>ian economical classes are segmented according to monthly household income levels as follows:<br />

Class A&B: + 4807 R$<br />

Class C : 1116 - 4807 R$<br />

Class D: 804 - 1115 R$<br />

Class E: Under 804 R$<br />

As can be seen, class A & B make up the upper income classes; class C is the "official" middle class; class D<br />

constitutes the lower middle class and class E is the lowest income segment.<br />

7 Source: Euro Monitor


Alcohol in <strong>Brazil</strong>ian Culture<br />

15<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Since the early 2000s, wine consumption and tasting have become much trendier among<br />

<strong>Brazil</strong>ians. This has made consumers more knowledgeable and has led to increased<br />

consumption, especially New World wines of South America. In 2001, the <strong>Brazil</strong>ian <strong>Wine</strong><br />

Institute (IBRAVIN) conducted research to evaluate consumers’ wine preferences. At that<br />

time, it was determined that there were three categories of wine consumers: light users (1/2<br />

bottle per month); medium users (1-3 bottles per month); and heavy users (more than 3<br />

bottles per month), representing 36 percent, 54 percent and 10 percent of buyers,<br />

respectively. Medium users tend to be 40 years of age and in the middle class, with an even<br />

distribution of men and women; more than half have university degrees. It was determined<br />

that income and education don’t affect consumption patterns while sex and age do. Men<br />

tend to be heavier drinkers, while females tend to be lighter drinkers. Consumption also<br />

tends to increase with age. Light drinkers tend to drink on holidays or in the winter.<br />

<strong>Brazil</strong>ians tend to consume mostly still wines and sparkling wines. Among still wines, red<br />

wine is the most popular. While vermouth and dessert wines have been popular in the past,<br />

consumption has been slowing and is expected to continue to decline as such types are not<br />

nearly as popular among young consumers. As a result, there are limited marketing<br />

campaigns to promote these products. <strong>Wine</strong> education is starting to see growth amoung<br />

<strong>Brazil</strong>ians and more consumers are familiarizing themselves with wine quality and type.<br />

<strong>Wine</strong> economists expect a growth in reserve wine sales in <strong>2011</strong>. In fine wines, the most<br />

common varietals are Cabernet Sauvignon, Merlot and Pinot Noir for still red wine, with<br />

esteem rising for Malbec and Shiraz. Chardonnay, Moscato and Sauvignon Blanc are the<br />

most popular varietals for still white wine and other sparkling wine.<br />

In <strong>Brazil</strong>, 750ml glass bottles are the most common form of packaging, accounting for 95<br />

percent of wines. Some manufacturers have invested in alternative packaging such as PET<br />

bottles and bag-in-a-box to reduce costs and promote sales to the younger generation.<br />

However, these pack types represent no more than 2 percent of volume sales. Salton<br />

released a 187ml glass bottle to stimulate sales amongst club and bar patrons. However,<br />

wine purchasing tends to take place mostly in supermarkets and specialty stores.<br />

In June 2008, the federal government enacted a law that established new rules for drink<br />

driving and sales of alcoholic drinks in highways located in rural areas. Law 11705/08, also<br />

named “Lei Seca” (Dry Law), prohibited sales of alcoholic drinks in restaurants, bars and<br />

any other establishment located in highways outside urban areas. This Law also changed<br />

the tolerance of drink driving from 0.6 mg/litre to 0.1 mg/litre. Drivers who are caught<br />

under the influence of more than 0.1 mg/litre will be subject to a fine of R$955, detention of<br />

their vehicle and withdrawal of their driving license for one year. For those who are caught<br />

with alcohol levels of over 0.6 mg/litre, the driver will also be taken into custody from six<br />

months to three years, with bail fixed between R$300 and R$1,200.


Domestic <strong>Market</strong>ing<br />

16<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

In 2008, IBRAVIN (<strong>Brazil</strong>ian Institute of <strong>Wine</strong>) and key players of the wine industry<br />

invested in an advertising campaign to promote national brands of still light grape wines<br />

and highlight the high quality of <strong>Brazil</strong>ian wines. There are also efforts to increase exports of<br />

still light grape wines and sparkling wines through a project called “<strong>Wine</strong>s of <strong>Brazil</strong>”, a<br />

partnership between wine manufacturers and APEX (<strong>Brazil</strong>ian Agency of Promotion of<br />

Exports and Investments). Sparkling wines still account for the majority of exports reaching<br />

665 tonnes in 2007.<br />

Declining sales of table wines and competition with Chilean and Argentinean still light grape<br />

wines will lead domestic manufacturers to increase investment in a wide product portfolio of<br />

fine wines with brands positioned as low-, mid- and high-end as part of the strategy to<br />

remain competitive and cater to the different demands of high-income consumers and mid-<br />

/low-income consumers. For wealthier consumers, the grape varietal type and origin of the<br />

wine are important attributes, while price followed by origin are the most important criteria<br />

for lower-income brackets.<br />

The competition between imported and national wines will persist until the <strong>Brazil</strong>ian<br />

government, trade associations and key domestic manufacturers adopt an agreement about<br />

the import tax charged to Chilean and Argentinean governments or subsidies provided by<br />

the <strong>Brazil</strong>ian government to protect domestic companies. Meanwhile, the wine industry will<br />

have to maintain investments in economy products and/or marketing campaigns to increase<br />

the visibility of their products.<br />

Investment in smaller packaging for sparkling wines and still light grape wines such as Salton<br />

might be a good strategy to stimulate young consumers to trial different alcoholic beverages,<br />

especially in the on-trade since the sector faces resistance from consumers between the ages<br />

of 18 and 25 that frequently prefer beverages such as beer, vodka and RTDs.<br />

U.S. <strong>Wine</strong>s in <strong>Brazil</strong><br />

Current U.S. Exports<br />

In 2010, U.S. wine sales to <strong>Brazil</strong> totaled $1,415,977 8 ; however, this represented a<br />

miniscule percentage of the wine import market. Over the last three years, <strong>Brazil</strong> has<br />

imported approximately 6.5 million cases (12 bottles of 750ml each) of wine per year, which<br />

represents US$ 196 million FOB of annual imports. The U.S. share of those imports is less<br />

than one percent. Although <strong>Brazil</strong>’s population is approximately 203 million, wine<br />

consumption per capita for 2010 was 1.8 liters. This small figure presents definite<br />

possibilities for market expansion. The United States Department of Agriculture, Foreign<br />

Agricultural Service (FAS) prepared a list of best import prospects based on <strong>Brazil</strong>ian<br />

consumption patterns. According to the FAS market trend evaluation, wine ranks second on<br />

the list of potential increase.<br />

8 http://www.gtis.com/gta/secure/gateway.cfm


Product Imports<br />

in 2009<br />

Dairy Products US$ 366<br />

mi<br />

<strong>Wine</strong> US$ 176<br />

mi<br />

Processed Fruit<br />

and<br />

Vegetables<br />

Fish/Seafood<br />

products<br />

Food<br />

Preparation<br />

products (HS<br />

Codes 21.03<br />

and 21.04)<br />

US$ 500<br />

mi<br />

US$ 501<br />

mi<br />

US$ 20<br />

mi<br />

Import Tariff<br />

Rate<br />

Depends on the HS<br />

Code. Ranges from<br />

14% to 28%<br />

Key Constraints to<br />

<strong>Market</strong> Development<br />

U.S. has to overcome tariffs<br />

and high transportation<br />

costs compared to tariffs<br />

applied to Mercosul member<br />

countries.<br />

20% U.S. has to overcome tariffs<br />

and high transportation<br />

costs compared to tariffs<br />

applied to wines from<br />

Mercosul member countries<br />

and Chilean wines.<br />

Investments in marketing<br />

are also needed.<br />

Depends on the HS<br />

Code. Ranges from<br />

10% to 18%<br />

Depends on the HS<br />

Code. Ranges from<br />

10% to 16%<br />

Depends on the HS<br />

Code. Ranges from<br />

16% to 18%<br />

Argentina is the largest<br />

exporter with a share of<br />

31% of total sales. U.S. has<br />

to overcome tariffs and<br />

transportation costs.<br />

U.S. has to overcome tariffs<br />

and U.S. transportation<br />

costs. Investments in<br />

marketing are<br />

also needed.<br />

U.S. is the top supplier of<br />

food preparation products<br />

with a share<br />

of 34% of total imported<br />

value.<br />

17<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

<strong>Market</strong> Attractiveness<br />

for<br />

USA<br />

From January-October,<br />

2010 imports increased<br />

20% compared to the<br />

same period in 2009.<br />

In 2009, wine imports<br />

increased 108%. <strong>Brazil</strong>ian<br />

consumers are open and<br />

receptive to wines from<br />

new origins and varieties.<br />

From January-October,<br />

2010 imports increased<br />

40% compared to the<br />

same period in 2009.<br />

From January-October,<br />

2010 imports increased<br />

40% compared to the<br />

same period in 2009.<br />

From January-October,<br />

2010 imports increased 4%<br />

compared to the same<br />

period in 2009.<br />

A turn in <strong>Brazil</strong>ian consumption patterns shows an increase in wine educated drinkers<br />

interested in purchasing New World wines. More affluent consumers are expanding the<br />

market possibilities for United States winemakers.<br />

Ability of US Brands to Penetrate the <strong>Market</strong><br />

<strong>Brazil</strong>ian wine imports have grown to a great extent in the past decade. South American and<br />

EU wine suppliers have well-established positions and customs duty preferences, making it<br />

difficult for other countries to penetrate the market. The current situation for wines of the<br />

United States could be considered difficult but not insurmountable. <strong>Brazil</strong>ian wine importers<br />

stated that the current exchange rate and the rise in income of <strong>Brazil</strong>ian citizens increase the<br />

attraction to purchase U.S. wines. The exceedingly high rate of imported Chilean wines only<br />

proves consumer interest in New World wines, a positive indicator for the United States.<br />

According to the Secretary for External Commerce from the Ministry for Development,<br />

Industry and Commerce (SECEX/MDIC), the growth of U.S. wine exports to <strong>Brazil</strong> was larger<br />

than the average growth of imported wines in containers of less than two liters. This means<br />

that over the course of five years, between 2005 and 2009, U.S. wine exports increased 187<br />

percent against an average growth of 108 percent of all imported wines in the same period.<br />

The United States ranked 2 nd only to France for the largest market growth. Thankfully,<br />

<strong>Brazil</strong>ian consumers are open to emerging trends, leading to significant growth opportunities<br />

for imports of New World wines. This openness should provide excellent opportunities for<br />

U.S. wines in the near future.


The Effect of <strong>Brazil</strong>ian Trade Policy on Imported <strong>Wine</strong><br />

18<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

<strong>Brazil</strong> is a party to a plurilateral free trade agreement called MERCOSUR. This agreement<br />

represents the Southern Cone Common <strong>Market</strong>. Countries involved in the agreement<br />

include Argentina, <strong>Brazil</strong>, Paraguay and Uruguay with Chile as an associate member.<br />

MERCOSUR created a customs union between member countries that provided for the<br />

elimination of certain trade barriers at the end of 1995. A common external tariff has been<br />

implemented upon all products coming in from outside the region. The mutual tariffs set for<br />

wine by the parties’ trade agencies were imposed at 20 percent.<br />

Argentinean producers profit in sales to <strong>Brazil</strong> since their wines are exempt from import<br />

tariffs under the MERCOSUR trade agreement. Because of this, Argentinean producers<br />

began intensely marketing their neighbor country. Even Chilean wines have enjoyed a<br />

decrease in import tax through a bilateral trade agreement with <strong>Brazil</strong> that will reach tax<br />

exemption in <strong>2011</strong>. In 2006, the <strong>Brazil</strong>ian government agreed to reduce import taxes from<br />

27 percent to zero percent in exchange for the Chilean agreement to purchase buses from<br />

<strong>Brazil</strong> for the widening tourism movement. These tax benefits have increased the<br />

popularity of Argentinean and Chilean wines while harming domestic sales and other<br />

imported wines at the same time.<br />

Consumption Analysis<br />

Value and Volume Estimates<br />

For 2009, <strong>Brazil</strong>ian wine consumption was 310.5 million liters, at a value of US $2,970<br />

million. Consumption for <strong>2011</strong> is estimated at 314 million liters, and consumption for 2014 is<br />

estimated at 332.9 million liters. On a per capita basis, <strong>Brazil</strong>ians consume 1.8 liters of wine<br />

per annum, a small figure compared to the neighboring country of Argentina at 23 liters per<br />

annum. Economists recognize a steady 10 percent increase in consumption in both 2009<br />

and 2010 and predict there will be a similar increase in <strong>2011</strong> and 2012.<br />

<strong>Brazil</strong>ian <strong>Wine</strong> Consumption<br />

Table A<br />

<strong>Brazil</strong>ian <strong>Wine</strong> Consumption- Historical and Projected<br />

By Volume (million liters)<br />

Year Total Imported Domestic<br />

2004 341.00 64.40 276.60<br />

2005 395.30 39.50 355.80<br />

2006 375.10 49.90 325.20<br />

2007 363.50 59.60 303.90<br />

2008 344.90 56.60 288.30<br />

2009 324.30 57.80 266.50<br />

2010 310.50 73.70 236.80


<strong>2011</strong> 314.00<br />

2012 319.20<br />

2013 327.00<br />

2014 332.90<br />

Source: Euromonitor- Passport<br />

Table B<br />

19<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

<strong>Brazil</strong>ian Fine <strong>Wine</strong> <strong>Market</strong><br />

YEAR/PRODUCT 2006 2007 2008 2009 2010<br />

NATIONAL 25,085 23,130 23,120 23,019 24,670<br />

IMPORTED 46,371 57,629 54,410 55,927 75,051<br />

TOTAL GRAPEVINES 71,456 80,759 77,530 78,946 99,721<br />

IMP. PARTICIP./TOTAL (%) 64.89 71.36 70.18 70.84 75.26<br />

Source: UVIBRA (<strong>Brazil</strong>ian Grape and <strong>Wine</strong> Producers Association); IBRAVIN (<strong>Brazil</strong>ian <strong>Wine</strong> Institute) and MDIC<br />

(Minstry of Development, Industry and Foreign Trade)<br />

Created by: Loiva Maria Ribeiro de Mello – Embrapa Uva e Vinho (Grape and <strong>Wine</strong>)<br />

It is important for third country producers to note imported fine wines (Table B) accounted<br />

for 75.26 percent of the total 100 million liters of fine wines sold in <strong>Brazil</strong>’s 2010 market.<br />

However, both Table A and Table B show <strong>Brazil</strong>ian wine consumption trends to be somewhat<br />

unpredictable. Consumption totals of imported and domestically produced wines tend to<br />

fluctuate from year to year. A variety of factors affect consumption totals. Emerging<br />

demands for imported wines are often hindered by new barriers to trade, and with much of<br />

the market demand for wine met by domestic production (which is highly concentrated in<br />

one region, Rio Grande do Sul), a poor crop can drastically affect the market. National fine<br />

wine has thus-far been unable to meet demand. The economic crisis clearly affected the<br />

<strong>Brazil</strong>ian wine industry, but analysts predict that consumption totals will continue to grow in<br />

the future, consistent with the rise of the middle class.<br />

<strong>Wine</strong> Consumption According to Price Structure<br />

Still <strong>Wine</strong> Consumption by Price Range (USD) in Million Liters<br />

2004 2005 2006 2007 2008 2009<br />

$0-$5.60 94.0 104.5 93.5 82.9 74.0 65.4<br />

$5.60-$13.43 110.4 135.3 130.3 128.5 122.2 115.9<br />

$13.43-$22.39 10.6 13.9 13.6 15.8 15.9 15.1<br />

$22.39+ 11.7 14.7 14.5 14.8 14.5 13.8<br />

Source: Euromonitor- Passport<br />

It is apparent from the table above that <strong>Brazil</strong>ian consumers strongly prefer moderately<br />

priced and less expensive wines. For 2009, over 86 percent of still wines consumed cost less


20<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

than $13.43. This is consistent with the idea that the rising middle class is consuming alcohol<br />

and the idea that most of the wine consumed is produced either domestically or in other<br />

South American Countries, keeping tariffs and transportation costs low.<br />

<strong>Wine</strong> Consumption for 2009 By <strong>Wine</strong> Type (Still <strong>Wine</strong>s)<br />

Still Light Grape <strong>Wine</strong> Consumption 2009 (by type)<br />

By Volume (million liters)<br />

Color Total<br />

Red 217.3<br />

White 45.9<br />

Rose 4.5<br />

Total 267.7<br />

Source: Euromonitor- Passport<br />

<strong>Brazil</strong>ians clearly have a strong preference for red wine. Of the red wines, Cabernet<br />

Sauvignon enjoys the dominant share with 71.6 million liters. Malbec and Merlot are also<br />

very popular grape varieties, with 22.5 and 24.3 million liters respectively. Of the white<br />

wines, Chardonnay is most popular with 21.5 million liters.<br />

Partner<br />

Country<br />

<strong>Wine</strong> Consumption Data for Imports<br />

<strong>Brazil</strong> Import Statistics<br />

Commodity: 2204, <strong>Wine</strong> Of Fresh Grapes, Incl Fortified; Grape Must O/T Heading 20.09<br />

Unit<br />

Calendar Year: 2008 - 2010<br />

2008 2009 2010<br />

USD Quantity USD Quantity USD Quantity<br />

World L 185,836,478 56,593,564 196,049,568 57,848,119 251,549,238 73,767,146<br />

Chile L 50,982,411 18,177,493 61,563,326 21,961,881 73,239,549 25,957,208<br />

Argentina L 40,476,584 15,297,016 41,255,809 14,752,051 55,715,290 18,046,478<br />

France L 27,048,955 3,051,254 28,840,407 2,973,740 35,805,532 3,577,296<br />

Italy L 28,853,317 10,704,938 26,076,286 9,055,564 33,452,731 12,960,301<br />

Portugal L 24,100,160 6,233,933 23,980,957 5,972,013 29,947,461 8,057,888<br />

Spain<br />

South<br />

L 7,215,868 1,239,690 7,627,607 1,411,411 10,618,202 1,989,727<br />

Africa L 1,182,329 315,459 1,973,912 498,107 3,637,693 939,835<br />

Uruguay L 2,097,911 880,192 1,963,590 748,045<br />

3,225,363 1,254,517<br />

Australia<br />

United<br />

L 1,252,014 196,777 1,000,788 213,247 1,876,543 345,808<br />

States L 577,322 77,536 728,777 92,535 1,415,977 220,637<br />

Source: worldtradestatistics.com/gta


Import <strong>Market</strong> Shares by Country of Origin<br />

21<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

The chart above clearly demonstrates the dominance of Chilean and Argentinean wines<br />

imported into <strong>Brazil</strong>. Both countries have seen their wine exports increase in value in the<br />

past three years. Chile controls 29 percent of total imports at an average FOB price of US<br />

$25.20 for a 9 liter case and Argentina maintains 22 percent at FOB US $23.50. Together,<br />

Chile and Argentina account for 57 percent of the imported wines to <strong>Brazil</strong>. The wine<br />

producers of the European Union follow distantly, yet maintain their positions as a result of<br />

established and recognized brands. The United States and some other New World wine<br />

producers, South Africa and Australia, have yet to fully actualize their potential in the<br />

market. The United States, the 10 th largest exporter, showed significant increases in both<br />

quantity and value from 2009-2010. The table below shows Chile and Argentina maintaining<br />

over 57 percent of wine import value, while the US currently holds a meager 0.56 percent.<br />

<strong>Brazil</strong> Trade <strong>Report</strong><br />

Import <strong>Market</strong> Shares by Country of Origin<br />

1. Chile 29.12%<br />

2. Argentina 22.15%<br />

3. France 14.23%<br />

4. Italy 13.30%<br />

5. Portugal 11.91%<br />

10. US 0.56 %<br />

worldtradestatistics.com/gta<br />

<strong>Brazil</strong> has realized the potential benefits of international cooperation and has made efforts in<br />

recent years to open its markets to international trade. <strong>Brazil</strong>’s trade policy is focused on<br />

membership in multinational organizations. <strong>Brazil</strong> is an original member of the World Trade<br />

Organization and is an active participant and leader, especially for developing countries.<br />

<strong>Brazil</strong> grants MFN status to all of its trading partners and over 75 percent of <strong>Brazil</strong>ian trade<br />

is done with these partners.<br />

<strong>Brazil</strong> is also very focused on collaborative regional trade. <strong>Brazil</strong> is one of the founders of<br />

the Southern Common <strong>Market</strong> (MERCOSUR), which represents over 250 million people and<br />

three-quarters of South American economic activity. The other full members include<br />

Argentina, Paraguay, and Uruguay. Bolivia, Chile, Colombia, Ecuador, and Peru hold<br />

associate member status which allows them to join free trade agreements, but remain<br />

outside the customs union. Venezuela is on the cusp of becoming a full member, pending<br />

ratification. MERCOSUR has pursued different trade negotiations with Israel, India, South<br />

Africa, Egypt, the Gulf Cooperation Council, Jordan, Morocco, Turkey and the European<br />

Union, though each has met difficulties in ratification and implementation. Several<br />

MERCOSUR leaders reject the idea of potential US free-market policies.


22<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Other trade organizations of which <strong>Brazil</strong> is a member include the Global System of Trade<br />

Preferences among Developing Countries (GSTP), Multilateral Investment Guarantee Agency<br />

(MIGA), and Organization for Economic Cooperation and Development (OECD).<br />

<strong>Brazil</strong>’s trade policy drastically affects its wine imports and the potential for US wines. In<br />

2006, <strong>Brazil</strong> and Chile signed an agreement to gradually eliminate import taxes reaching<br />

zero percent by 2010. In exchange, Chile agreed to purchase <strong>Brazil</strong>ian buses. As members<br />

of MERCOSUR, Argentina and <strong>Brazil</strong> share zero percent import taxes. This explains the high<br />

concentration of these wines in <strong>Brazil</strong> from previous sections of this report.<br />

Trade Balance<br />

Grape, Grape juice, wine and by-products exports and imports balance: amounts in<br />

USD 1,000.00 (FOB) – <strong>Brazil</strong> 2008/2010<br />

Product 2008 2009 2010<br />

Quantity USD Quantity USD Quantity USD<br />

Exports<br />

Fresh grapes (t) 82,242 171,456 54,560 110,574 60,805 136,649<br />

Grape juice (t) 6,623 15,174 5,860 12,621 3,098 8,048<br />

Table wine (1,000 L) 10,346 7,118 25,514 8,941 10,067 5,297<br />

Sparkling wine (1,000<br />

L) 355 548 190 347 320 1,335<br />

Total<br />

194,296<br />

132,483<br />

151,329<br />

Imports<br />

Fresh grapes (t) 12,565 14,849 18,655 21,697 24,794 36,075<br />

Raisins (t) 20,146 34,973 22,656 32,648 25,919 50,664<br />

Table wine (1,000 L) 54,410 165,692 55,927 176,396 70,737 223,080<br />

Sparkling wine (1,000<br />

L) 3,502 20,144 3,200 19,473 4,314 27,961<br />

Grape juice (t) 185 227 43 52 - -<br />

Total<br />

BALANCE<br />

235,885<br />

-41,589<br />

Source: MDIC (Ministry of Development, Industry and Foreign Trade)<br />

Created by: Loiva Maria Ribeiro de Mello - Embrapa Uva e Vinho (Grape and <strong>Wine</strong>)<br />

250,266<br />

-117,783<br />

337,780<br />

-186,451<br />

Imported wine sales are higher than domestic sales by a large margin, proving <strong>Brazil</strong> to be a<br />

targetable consumer market. In 2010, imported wine totaled $251.5 million. There was a<br />

26.48 percent increase in wine imports quantity with an average price of USD 3.15 per liter.<br />

The table above shows <strong>Brazil</strong> to hold a USD 186.451 million deficit due to an increase in<br />

imports in all items and a reduction in exports.


Import Procedures 9<br />

Customs Clearance<br />

23<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

In order to export wine to <strong>Brazil</strong>, U.S. exporters must have the following documents:<br />

• Pro forma invoice (including product information, form of payment, method of<br />

transportation, etc.)<br />

• Commercial invoice (this is required to clear the products through Customs. The<br />

commercial invoice should include U.S. exporter and <strong>Brazil</strong>ian importer information,<br />

quantities, brands, net and gross weights of the package, country of origin,<br />

destination country, payment conditions, etc.)<br />

• Air Waybill or Bill of Lading<br />

• Certificate of Origin and Analysis<br />

It is essential for the U.S. exporter to establish a good working relationship with a <strong>Brazil</strong>ian<br />

importer. The importer accepts a pro forma invoice by the exporter then applies for an<br />

import license (LI) before any shipments can enter <strong>Brazil</strong>. The license is obtained through<br />

the SISCOMEX electronic system and must be approved by MAPA before any shipment is<br />

made. Once the import license is obtained, the importer must register the Import<br />

Declaration at SISCOMEX. The Import Declaration contains importer information, data on<br />

the cargo and bonded storage, etc. The importer will then notify the exporter and provide<br />

“embarkation instructions” for wine shipment. When the wine arrives in <strong>Brazil</strong>, the importer<br />

must have goods physically reviewed by a MAPA official, pay duties and taxes and have all<br />

required information for the customs inspection before the release of the product.<br />

The following table lists the procedures necessary and the number of days spent on each for<br />

importing standardized cargo of goods into <strong>Brazil</strong>. <strong>Wine</strong> requires some additional<br />

documentation.<br />

Import Procedures (2010)<br />

Nature of Import Procedures Duration (days) Cost (USD)<br />

Documents preparation 8 330<br />

Customs clearance and technical control 4 250<br />

Ports and terminal handling 3 300<br />

Inland transportation and handling 2 850<br />

Totals 17 1730<br />

World Bank. Doing Business in <strong>Brazil</strong> <strong>2011</strong>. Washington, DC. www.doingbusiness.org<br />

Standard Import Documents 10<br />

9 For a more detailed description of import procedures see http://www.usdabrazil.org.br/home/pdf/rw_wine.pdf<br />

10 (World Bank. Doing Business in <strong>Brazil</strong> <strong>2011</strong>. Washington, DC. www.doingbusiness.org) (US Agricultural Trade<br />

Office (ATO) of USDA/Foreign Agricultural Service in Sao Paulo, <strong>Brazil</strong> <strong>Wine</strong> <strong>Market</strong> Access Project).<br />

www.usdabrazil.org.br)


24<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

The following is a list of exporter documents necessary to import a standardized cargo of<br />

goods into <strong>Brazil</strong>, taken from both the World Bank’s report Doing Business in <strong>Brazil</strong> <strong>2011</strong> and<br />

USDA’s Sao Paulo Agricultural Trade Office <strong>Wine</strong> <strong>Market</strong> Access Project:<br />

• Copy of Bill of lading<br />

• Certificate of analysis and certificate of Origin<br />

• Aging certificate (if necessary)<br />

• Cargo release order<br />

• Commercial invoice<br />

• Customs Import Declaration<br />

• Foreign Exchange Authorization<br />

• Packing list<br />

• Technical Standard/ Health Certificate<br />

Product Certificates 11<br />

All wines exported to <strong>Brazil</strong> must be accompanied by a certificate of origin and a certificate of<br />

analysis. A Letter of Free Sale from TTB substitutes for the certificate of origin. Since the<br />

regulations define wine as 14 percent or less, for any wine above 14 percent alcohol a<br />

Certificate of Typicity is required. The certificate is to clarify that the higher alcohol content<br />

is because of the wine appellation’s soil and climate conditions. In recent regulations, MAPA<br />

requires exporting countries to provide a formal list of government accredited entities eligible<br />

to issue certificates of origin and analysis. Certificates from Chambers of Commerce are no<br />

longer eligible sources. MAPA provides models of the forms presented in Normative<br />

Instruction no. 54/2009, ANNEX VIII (see Appendix II). Both certificates must be signed and<br />

stamped upon importation. A list of eligible entities is made available on MAPA’s web site<br />

(https://www.agricultura.gov.br/).<br />

Labeling Requirements<br />

The following information is required by <strong>Brazil</strong>ian law to be placed on labels of alcohol<br />

beverages. For a product whose label is not in the Portuguese language, an adhesive sticker<br />

can be placed on the original label containing all the required information:<br />

• Brand name of product<br />

• Type of product<br />

• Net contents (in metric units)<br />

• Importer’s name, address and corporate ID number<br />

• Producer or Manufacturer’s name and address<br />

• MAPA Registration number of importer<br />

• Country of origin<br />

• Alcohol content (% alc. by volume)<br />

• List of ingredients<br />

• Lot identification code<br />

• Storage care<br />

11 See Appendix I for Regulations Concerning Oenological Practices


25<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

• Period of validity (if applicable)<br />

• Gluten declaration: “Contém Glúten" (Contains Gluten) or “Não contém Glúten” (Does<br />

not contain Gluten)<br />

• Warning statement must be declared in bold letters on labels for beverages with<br />

alcohol content above 13 percent alcohol by volume: “Evite o consumo excessivo de<br />

álcool” (Avoid excessive consumption of alcohol).<br />

The exporter should forward a sample of the package to the importer in order to confirm<br />

label compliance. 12<br />

Tax and Duty Structure<br />

Importing wine to <strong>Brazil</strong> is met with a significant tax burden. Imported U.S. wine is subject<br />

to a 27 percent import duty for bottles containing two liters or less. Other wine categories<br />

(over two liters) like most other imported goods have only a 20 percent tariff. <strong>Brazil</strong>ian<br />

Federal authorities view bottled wine as a luxury good imposing a higher duty. In addition,<br />

the following taxes are imposed on a cumulative “compounded” basis with the value added<br />

tax imposed on the total “tax paid” value.<br />

HS Code Duty Applied On Taxes Applied On<br />

2204.21 27% CIF 40% IPI (industrial products tax) CIF + Duty<br />

7.6% COFINS (social security tax) CIF + duty + IPI<br />

1.65 PIS (social security tax) CIF + duty + IPI<br />

17% ICMS (Merchandise circulation<br />

tax) CIF + duty + IPI + (PIS + COFINS)<br />

1% Miscellaneous Tax CIF<br />

25% VAT CIF and all of the above<br />

Government Agencies Regulating Alcohol<br />

In <strong>Brazil</strong> the Secretariat of Agricultural Protection (SDA) and the Ministry of Agriculture,<br />

Livestock and Food Supply (MAPA) have authority over domestic and imported plant<br />

products and by-products. Within the SDA, the Department of Plant Origin Products<br />

Inspection Service (DIPOV) enforces federal law regarding the registration, compliance and<br />

labeling of beverages (including distilled spirits and wine, soft drinks and juices). With the<br />

recent rise in imports, the General Coordination for <strong>Wine</strong>s and Beverages (CGVB) was<br />

created to oversee wine and beverages. Inspections at points of entry are overseen by the<br />

General Coordination for International Sanitary Inspection of Agriculture and Livestock<br />

(CGVIG). 13<br />

12 http://www.ttb.gov/itd/brazil.shtml#REQUIREMENTS<br />

13 FAS GAIN <strong>Report</strong> BR10010


<strong>Market</strong>ing Analysis<br />

Organized Retail<br />

26<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

In regard to food distribution in <strong>Brazil</strong>, retailers are the majority sector. There are<br />

approximately 78,300 retail stores according to the <strong>Brazil</strong>ian Supermarket Association<br />

(ABRAS). Of the top 500 supermarkets, the three largest (percentage share of gross sales,<br />

2009) are - Pao de Acucar: 21.5 percent; Carrefour: 21.0 percent; Walmart: 16.2 percent. 14<br />

Recently, retail chains have shown interest in purchasing wines directly from wineries. This<br />

new endeavor will avoid the three-tier system involved in buying wines from importers and<br />

distributors. Direct shipment could reduce the retail price significantly, allowing the end<br />

consumers to expand their purchasing options. This will broaden the exposure of New World<br />

wines to a large range of consumers.<br />

<strong>Brazil</strong>ian <strong>Wine</strong> Importers<br />

Of direct imports, the most prominent players are the groups Carrefour, Companhia<br />

Brasileira de Distribuição, Walmart, Sonae, Sendas and Casa Santa Luzia. Most of the<br />

major specialized importing companies, such as Expand, Mistral or Interfood, are based<br />

in São Paulo. Expand is the largest wine importer in <strong>Brazil</strong> and currently represents<br />

2,500 labels.<br />

Retail chains have recently shown more interest in purchasing wines direct from wineries<br />

without having to buy from importers and distributors. <strong>Wine</strong>ries currently selling to Walmart<br />

or Carrefour should contact their buyers to determine the opportunities for direct sales.<br />

Name: Carrefour<br />

Address: Av Marechal Deodoro, Anápolis - GO, 75103, <strong>Brazil</strong><br />

Website: www.carrefourbairro.com.br/<br />

C.E.O: Lars Olofsson<br />

Established In: France<br />

Major Brands: Atacadao<br />

Description About the Company: Carrefour S.A. operates 67 hypermarkets, 81<br />

supermarkets, and hard discount and convenience<br />

stores primarily in Europe, Latin America, and Asia.<br />

14 <strong>Brazil</strong>ian Food Processors’ Association (ABIA)


Distribution (National, local,<br />

regional):<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

27<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

The supermarkets provide non-food ranges, such as<br />

apparel, culture and leisure, and tableware products.<br />

Its hard discount stores offer non-food items, fruits,<br />

vegetables, meat, fish, and snacks; and convenience<br />

stores provide products for preparing meals,<br />

including fresh produce and a butcher’s department;<br />

ready-to-eat products and daily items; and mobile<br />

phone top-up vouchers. In addition, the company<br />

operates as a wholesaler for catering and food<br />

industry professionals; and provides online shopping<br />

services.<br />

National<br />

Retail<br />

Name: Companhia Brasileira de Distribuição<br />

Address: Av. Brigadeiro Luiz Antonio,<br />

3142 Săo Paulo, SP 01402-901<br />

Website: www.carrefourbairro.com.br/<br />

C.E.O: Enéas César Pestana Neto<br />

Contact person: José Roberto Coimbra Tambasco<br />

Established In: São Paulo<br />

Description About the Company: Companhia Brasileira de Distribuicao, together with<br />

its subsidiaries, operates as a retailer and wholesaler<br />

of food products, bazaar articles, clothing, home<br />

appliances, and other products through its chain of<br />

hypermarkets, supermarkets, specialized and<br />

department stores, convenience stores and the<br />

Internet in <strong>Brazil</strong>. The company operates its stores<br />

under the Pao de Acucar, CompreBem, Extra, Extra<br />

Eletro, Extra Perto, Extra Facil, Extra.com, Sendas,<br />

Assai, and Ponto Frio e PontoFrio.com names.<br />

Distribution (National, local, National<br />

regional):<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Retail<br />

Wholesale):<br />

Name: Walmart<br />

Address: 702 SW 8th Street, Bentonville, Arkansas 72716-<br />

8611<br />

Website: www.walmartbrasil.com.br/<br />

C.E.O: Hector Nunez<br />

Established In: Barueri, <strong>Brazil</strong><br />

Description About the Company: Walmart Brasil Ltda. owns and operates<br />

supermarkets and hypermarkets. The company’s<br />

products include food, clothing, household<br />

appliances, and electronics. It was formerly known<br />

as Sonae Distribuicao Brasil S/A. The company was<br />

founded in 1995 and is based in Barueri, <strong>Brazil</strong>.<br />

Walmart Brasil Ltda. operates as a subsidiary of<br />

Wal-Mart Stores Inc.


Distribution (National, local,<br />

regional):<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

National<br />

Retail<br />

28<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Name: Grupo Pão de Açúcar<br />

Address: Headquarters: Avenida Brig.Luiz Antonio 3172 Sao<br />

Paulo, SP 01402901 <strong>Brazil</strong><br />

Website: www.grupopaodeacucar.com.br/home.htm<br />

C.E.O: Eneas Pestana<br />

Description About the Company: Publicly traded, largest <strong>Brazil</strong>ian company engaged in<br />

retailing food, general merchandise, electronic goods,<br />

home appliances and other goods from<br />

supermarkets, hypermarkets and home appliance<br />

stores.<br />

Distribution (National, local,<br />

regional):<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

National. Distribution and logistical centers located<br />

in São Paulo, Rio de Janeiro, Fortaleza, Curitiba and<br />

Recife.<br />

Retail<br />

Name: G. Barbosa Comercial Ltda.<br />

Address: Rod Br 235 Km 04, Anexo 01, S/N<br />

Nossa Senhora Do Socorro, SE 49160-000<br />

Website: www.gbarbosa.com.br<br />

Established In: Nossa Senhora Do Socorro<br />

Description About the Company: G. Barbosa Comercial Ltda. owns and operates<br />

supermarkets, hypermarkets, soft discount<br />

supermarkets, and pharmacies. G. Barbosa<br />

Comercial Ltda. operates as a subsidiary of<br />

Cencosud S.A.<br />

Distribution (National, local,<br />

regional):<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

National<br />

Retail<br />

Name: Companhia Zaffari Comércio e Indústria<br />

Address: Av Plinio Brasil Milano 1000<br />

Porto Alegre, RS 90520-000<br />

Website: www.zaffari.com.br<br />

C.E.O: Cláudio Zaffari<br />

Established In: Porto Alegre<br />

Description About the Company: Companhia Zaffari Comercio E Industria owns and<br />

operates a chain of hypermarkets and shopping<br />

centers in Rio Grande do Sul and São Paulo.<br />

Distribution (National, local,<br />

regional):<br />

National<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

Retail


29<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Name: Prezunic Comercial Ltda.<br />

Address: Avenida das Americas nº 16100<br />

Sobre Loja Rio de Janeiro, RJ 22790-704<br />

Website: www.prezunic.com.br<br />

C.E.O: Genival de Souza Beserra<br />

Established In: Rio de Janeiro<br />

Description About the Company: Prezunic Comercial Ltda. operates a chain of<br />

supermarkets. The company was founded in 2001.<br />

Distribution (National, local,<br />

regional):<br />

National<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

Retail<br />

Name: DMA Distribuidora<br />

Address: Av. Senador Queiroz 605<br />

São Paulo, SP 01026-001<br />

Website: www.grupodma.com.br/<br />

C.E.O: Epifânio Parreiras Júnior<br />

Established In: São Paulo<br />

Description About the Company: DMA Distribuidora S/A owns and operates grocery<br />

stores.<br />

Distribution (National, local,<br />

regional):<br />

National<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

Retail<br />

Name: Lojas Americanas<br />

Address: Rua Sacadura Cabral, 102 Saude<br />

Rio De Janeiro, RJ 20081-260 <strong>Brazil</strong><br />

Website: www.americanas.com.br; www2.lasa.com.br<br />

C.E.O:<br />

Murilo dos Santos Corrêa<br />

Established In: Rio de Janeiro<br />

Description About the Company: Lojas Americanas S.A., together with its<br />

subsidiaries, operates a chain of retail stores and ecommerce<br />

sites in <strong>Brazil</strong>. Its stores offer<br />

confectionery products, biscuits, toys, CDs, DVDs,<br />

home appliances, personal care products, cosmetics,<br />

stationery, and clothing, as well as table, bed, and<br />

bathware. The company also operates three ecommerce<br />

sites, including Americanas.com,<br />

Shoptime, and Submarino.<br />

Distribution (National, local,<br />

regional):<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

National<br />

Retail


30<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Name: A Angeloni & Cia Ltda<br />

Address: Av. Do Centenario 7521<br />

Criciuma, SC 88815-900 <strong>Brazil</strong><br />

Website: www.angeloni.com.br<br />

C.E.O: Antenor Angeloni<br />

Established In: Criciuma<br />

Description About the Company: A. Angeloni & Cia. Ltda. operates a chain of<br />

supermarkets in <strong>Brazil</strong>. In addition, it operates drug<br />

stores, gas stations and distribution centers.<br />

Distribution (National, local,<br />

regional):<br />

National<br />

<strong>Market</strong> (Retail, HoReCa,<br />

Wholesale):<br />

Retail<br />

Other Companies Importing into <strong>Brazil</strong><br />

Company Name Address Website Phone<br />

ADEGA ALENEJANA Rua Cincinati, 12, Brooklin, São<br />

Paulo<br />

ALLFOOD Rua da Moóca, 1736, Moóca -<br />

SP<br />

www.adegaalentejana.com.br (011) 5044-5760<br />

www.allfood.com.br (011) 6099-0444<br />

ANA IMPORT São Paulo www.anaimport.com.br (011) 5501-1900<br />

AURORA IMPORTADORA São Paulo www.auroravinhos.com.br Vendas: (011)<br />

3048-2282<br />

BACCO’S Rua Sergipe, 568 Higienópolis-<br />

SP<br />

BEALE BEBIDAS Rua Rego Freitas, 52, Vila<br />

Buarque, São Paulo<br />

www.baccos.com.br (011) 3661-7898<br />

www.beale.com.br (011) 3337-0899<br />

BEST WINE São Paulo www.bestwine.com.br Vendas: (11)<br />

3722-2155<br />

BRUCK Rua Paula Souza, 216, Santa<br />

Ifigênia -SP<br />

www.bruck.com.br (011) 3329-3400<br />

CANTU São Paulo www.cantu.com.br 0300 210 1010<br />

CASA DO PORTO Alameda Franca, 1225, Jardim<br />

Paulista -SP<br />

www.casadoporto.com<br />

(011)3061-3003<br />

CASA FLORA Rua Santa Rosa, 207, Brás - SP www.casaflora.com.br (011) 3327-5199<br />

CASA LISBOA Praça Silvio Romero, 126,<br />

Tatuapé -SP<br />

CASA SANTA LUZIA Alameda Lorena, 1471, Jardins<br />

- SP<br />

www.casalisboa.com.br (011) 6197-4888<br />

www.santaluzia.com.br (011) 3897-5000<br />

CELLAR São Paulo www.cellar-af.com.br (011) 5531-2419<br />

DECANTER Rua Joaquim Floriano, 101, Cj.<br />

805/807, Itaim Bibi -SP<br />

DE LA CROIX Av. Pedroso de Moraes, 677,<br />

Cj. 61, Pinheiros -SP<br />

<strong>EMP</strong>ÓRIO FREI CANECA Shopping Frei Caneca - 1º piso<br />

- lojas 208/209/210, Cerqueira<br />

César -SP<br />

<strong>EMP</strong>ÓRIO HÚNGARO Rua da Paz, 956, Chácara<br />

Santo Antônio -SP<br />

ENOTECA FASANO Rua Amauri, 255, Itaim Bibi -<br />

SP<br />

EXPAND<br />

EXPAND STORE<br />

SHOPPING D&D<br />

Av. das Nações Unidas, 12.551<br />

- Piso L1 - Loja 105, Brooklin<br />

Novo -SP<br />

www.decanter.com.br (011) 3074-5454<br />

www.delacroixvinhos.com.br (011) 3034-6214<br />

www.emporiofrecaneca.com.br<br />

www.emporiohungaro.com.br<br />

(011) 3472-2082<br />

(011) 5181-6298<br />

(011) 2597-0876<br />

www.enotecafasano.com.br (011) 3168-1255<br />

(011) 3043-9877


EXPAND<br />

EXPAND STORE<br />

SHOPPING MARKET<br />

PLACE<br />

EXPAND STORE<br />

HIGIENÓPOLIS<br />

EXPAND STORE<br />

SHOPPING ANÁLIA<br />

FRANCO<br />

EXPAND STORE <strong>EMP</strong>ÓRIO<br />

SANTA MARIA<br />

EXPAND STORE<br />

SHOPPING IGUATEMI<br />

EXPAND STORE<br />

SHOPPING VILLA-LOBOS<br />

Av. das Nações Unidas, 13.947<br />

- Térreo - Loja 107, Brooklin<br />

Paulista -SP<br />

R. Bahia, 683, Higienópolis<br />

(Brasserie Erick Jacquin) -SP<br />

R. Regente Feijó, 1.179 - Piso<br />

Orquídea - Loja 12/13, Jardim<br />

Anália Franco -SP<br />

Av. Cidade Jardim, 790, Jardim<br />

Paulista -SP<br />

Av. Brigadeiro Faria Lima,<br />

2.232 - Loja G-02/06, Jardim<br />

Paulistano -SP<br />

Av das Nações Unidas, 4.777 -<br />

2º Piso - Loja 239/240,<br />

Pinheiros -SP<br />

EXPAND STORE DASLU Rua Chedid Jafet, 131 - 2º<br />

andar, Vila Olímpia -SP<br />

GALERIA DOS PÃES Rua Estados Unidos, 1645,<br />

Jardim América -SP<br />

GRAND CRU Rua Bela Cintra, 1799 – Jardins<br />

-SP<br />

GRAND VIN Av. Brigadeiro Faria Lima, 4433<br />

-SP<br />

IMIGRANTES BEBIDAS Avenida Miguel Stéfano, 2096,<br />

Água Funda -SP<br />

31<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

www.iguatemisaopaulo.com.br<br />

www.expand.com.br<br />

www.galeriadospaes.com.br<br />

(011) 5543-5228<br />

(011) 3824-4300<br />

(011) 6672-3559<br />

(011) 2102-7788<br />

(011) 3037-7001<br />

(011) 3023-5002<br />

(011) 3841-4577<br />

(011) 3064-5900<br />

www.grandcru.com.br (011) 3062-6388<br />

www.grandvin.com.br<br />

www.imigrantesbebidas.com.br<br />

(011) 3045-9888<br />

(011) 5058-2099<br />

IMPEXCO São Paulo www.impexco.com.br (011) 3257-0653<br />

INTERFOOD/CLASSICS São Paulo www.interfood.com.br Vendas: (011)<br />

0800-7701871<br />

KMM Rua Medeiros de Albuquerque,<br />

23, Vila Madalena -SP<br />

LE TIRE-BOUCHON Rua Barão de Tatuí, 285, Santa<br />

Cecília -SP<br />

www.kmmvinhos.com.br (011) 3819-4020<br />

www.letirebouchon.com.br<br />

(011) 3822-0515<br />

LVMH São Paulo www.lvmh.com.br (011) 3062-8388<br />

MIOLO São Paulo www.miolo.com.br<br />

(011) 2167-1600<br />

0800 970 4165<br />

MISTRAL Rua Rocha, 288, Bela Vista -SP www.mistral.com.br (011) 3372-3400<br />

PENÍNSULA São Paulo www.peninsula.akinaloja.com.b<br />

r<br />

Vendas: (011)<br />

3822-3986<br />

QUALIMPOR São Paulo www.qualimpor.com.br Vendas: 0800-<br />

7024492<br />

REI DOS WHISKY’S Avenida Sabiá, 243, Moema -<br />

SP<br />

REI DOS WHISKY’S Rua Maria Amália Lopes<br />

Azevedo, 973, Tremembé -SP<br />

www.reidoswhiskys.com.br (011) 3488-2199<br />

www.reidoswhiskys.com.br (011) 6203-7700<br />

SALTON São Paulo www.salton.com.br (11) 2281-3300<br />

SANTAR São Paulo www.santar.com.br (011) 3227-7355<br />

SMARTBUY WINES Endereço Matriz: Rua Dr Vieira<br />

Bueno, 359 sala 2 Campinas,<br />

São Paulo CEP13024-040<br />

SMARTBUY WINES Escritorio SP: R Sonia Ribeiro,<br />

1022 Brooklin Paulista<br />

São Paulo CEP 04621-010<br />

www.smartbuywines.com.br<br />

www.smartbuywines.com.br<br />

Telefone: 11 2308-<br />

2793<br />

19 3368-5351<br />

TERROIR Av. Europa, 580 , Pinheiros -SP www.terroirvinhos.com.br (011) 3087-8300<br />

TERROIR Rua Aurora, 872, Centro -SP www.terroirvinhos.com.br (011) 2109-1500<br />

VARANDA FRUTAS &<br />

MERCEARIA<br />

Praça Deputado Dario de<br />

Barros, 401, Cidade Jardim -SP<br />

www.varanda.com.br<br />

(011) 3035-5855


VILA VINHOS Rua Dr. Cândido Motta Filho,<br />

856, S1- Vila São Francisco -SP<br />

VILLE DU VIN Rua Diogo Jacomé, 361, Vila<br />

Nova Conceição -SP<br />

VILLE DU VIN Al. Tocantins, 75, Lj. 2,<br />

Alphaville -SP<br />

VILLE DU VIN Avenida Portugal, 749, Santo<br />

André -SP<br />

VINCI Rua Siqueira Cardoso, 227,<br />

Mooca -SP<br />

VINEA STORE Rua Manuel da Nóbrega, 1014,<br />

Paraíso - SP<br />

VINISSIMO IMPORTAÇÃO<br />

EXPORTAÇÃO E<br />

COMÉRCIO LTDA<br />

Avenida Dr Marcos Penteado de<br />

Ulhôa Rodrigues, 1.119 - Sala<br />

1503<br />

06460-040 - Barueri - SP<br />

VINO! Rua Professor Tamandaré<br />

Toledo, 51, Itaim Bibi -SP<br />

WORLD WINE Rua da Alfândega, 182, Brás<br />

-SP<br />

WORLD WINE Rua Padre João Manuel, 1269,<br />

Jardim Paulista -SP<br />

32<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

www.vilavinhos.com.br<br />

www.villeduvin.com.br<br />

www.villeduvin.com.br<br />

www.villeduvin.com.br<br />

www.vincivinhos.com.br<br />

www.vineastore.com.br<br />

(011) 3719-1504<br />

(011) 3045-8137<br />

(011) 4208-6061<br />

(011) 4994-9490<br />

(011) 6097-0000<br />

(011) 3059-5200<br />

Fones: (011) 4195-<br />

5554/5547/5532<br />

www.lojavino.com.br (011) 3078-6442<br />

www.worldwine.com.br<br />

www.worldwine.com.br<br />

(011) 3383-7477<br />

(011) 3085-3055<br />

WINE COMPANY São Paulo www.winecompany.com.br 0800 725 8020<br />

ZAHIL Rua Manuel Guedes, 294, Itaim<br />

Bibi -SP<br />

ASTI VINHOS Rua Barreto Leme, 1804<br />

Cambuí - Campinas/SP<br />

BALCÃO BEBIDAS Rua Carolina Florence, 1234 -<br />

Vila Nova - Campinas/SP<br />

<strong>EMP</strong>ÓRIO D’GUSTTA Rua Coronel Silva Telles, 246 -<br />

Cambuí - Campinas/SP<br />

<strong>EMP</strong>ÓRIO MICHELUTTI Rod. Don Pedro I, Km. 131,5 -<br />

Campinas/SP<br />

<strong>EMP</strong>ÓRIO DI PIETRO Av. Dr. Antônio Carlos Couto de<br />

Barros, 1101, loja 8 - Sousas -<br />

Campinas/SP<br />

FOODWINE GRAND CRU<br />

CAMPINAS<br />

R. Dr. Sampaio Ferraz, 336 -<br />

Cambuí - Campinas/SP<br />

TOKAY VINHOS Al. Dos Vidoeiros, 455<br />

CDC ENOTECA Av. Heitor Vila Lobos, 841 -<br />

Vila Ema - São José dos<br />

Campos/SP<br />

VILA DOS VINHOS Rua Ipiranga, 143 - Jd. Maringá<br />

- São José dos Campos/SP<br />

Relevant Contacts<br />

Authors of this Study<br />

<strong>JBC</strong> International<br />

111 Rockville Pike, Suite 410<br />

Rockville, MD 20850<br />

Tel: (202) 463-8493<br />

E-mail: www.jbcinternational.com<br />

www.zahil.com.br<br />

www.balcaodebebidas.com.br<br />

www.campinas.com.br<br />

www.emporiomichellutti.com.br<br />

www.emporiodipietro.com.br<br />

www.foodwine.com.br<br />

www.tokayvinhos.com.br<br />

www.vilavinhos.com.br<br />

(011) 3071-2900<br />

(019) 3252-2519<br />

(019) 3242-6300<br />

(019) 3254-5711<br />

(019) 3207-4241<br />

(019) 3258-6244<br />

(019) 3252-4311<br />

(019) 3295-1994<br />

(012) 3922-0505<br />

(012) 3913-1408


Further Export Assistance<br />

U.S. Agricultural Trade Office (ATO)<br />

U.S. Consulate General<br />

Rua Henri Dunant, 700<br />

04709-110 Sao Paulo- SP<br />

Tel: (55 11) 5186-7400<br />

Fax: (55 11) 5186 - 7499<br />

E-mail: atosaopaulo@usda.gov<br />

atobrazil@usdabrazil.org.br<br />

Home Page: www.usdabrazil.org.br<br />

Office of Agricultural Affairs (OAA)<br />

U.S. Embassy<br />

Av. Das Nacoes, quadra 801, lote 3<br />

70403-900 Brasilia – DF<br />

Tel: (55 61) 3312-7000<br />

Fax: (55 61) 3312-7659<br />

Email: agbrasilia@usda.gov<br />

Public Stakeholders<br />

33<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Office of Trade Programs<br />

U.S. Department of Agriculture<br />

Foreign Agricultural Service<br />

1400 Independence Ave., S.W.<br />

Washington, DC 20250<br />

http://www.fas.usda.gov/OTP_contacts.asp<br />

Alcohol and Tobacco Tax and Trade<br />

Bureau<br />

TTB/International Trade Division<br />

1310 G Street, NW.,<br />

Suite 300<br />

Washington, D.C. 20220<br />

Phone: (202) 453-2260<br />

Fax: (202) 453-2970<br />

www.ttb.gov<br />

MAPA/<strong>Wine</strong> and Beverages Division of the Coordinator-General of <strong>Wine</strong>s and Beverages<br />

(CGVB)<br />

Esplanada dos Ministérios, Bloco D, Anexo B, Sala 333<br />

70043-900, Brasília, DF<br />

Phone: (55-61) 3218-2443<br />

Fax: (55-61) 3224-8961<br />

E-mail: graciane.castro@agricultura.gov.br<br />

Home Page: www.agricultura.gov.br<br />

MF/Secretariat of Foreign Trade (SECEX)<br />

Esplanada dos Ministérios, Bloco J, Sala 814<br />

70053-900, Brasilia, DF<br />

Phone: (55-61) 2109-7080<br />

E-mail: decex.coord@desenvolvimento.gov.br<br />

Home Page: http://www2.desenvolvimento.gov.br/sitio/secex/secex/<br />

American Chamber of Commerce<br />

The American Chamber of Commerce is another good source for information on doing business in<br />

<strong>Brazil</strong>. The Chamber offices in <strong>Brazil</strong> are:<br />

São Paulo<br />

Rua da Paz 1431 CEP 04713-001 - São Paulo SP - Brasil<br />

Telephone: 55 11 3324-0194<br />

Fax: 55 11 5180 3777<br />

Belo Horizonte<br />

Rua Da Paisagem, 220<br />

CEP: 34000-000 - Nova Lima - MG<br />

Telephone: 55 31 2126-9750<br />

Fax: 55 31 2126-9772<br />

E-mail: amcham.belohorizonte@amchambrasil.com.br


Brasília<br />

SHIS QI 5, Comércio Local, Bloco C 1º andar - Lago Sul<br />

CEP: 71615-530 - Brasília - DF<br />

Telephone: 55 61 3704-8017<br />

Fax: 55 61 3704-8037<br />

E-mail: amcham.brasilia@amchambrasil.com.br<br />

34<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Campinas<br />

Av Dr José Bonifácio Coutinho Nogueira 150 - Ed. Galleria Plaza - 7º Andar - Sala 701<br />

CEP: 13091-611<br />

Telephone/ Fax: 55 19 2104-1250 / 2104-1275<br />

E-mail: amcham.campinas@amchambrasil.com.br<br />

Curitiba<br />

Rua Eurípedes Garcez do Nascimento, 1004<br />

CEP: 80540-280 - Curitiba - PR<br />

Telephone: 55 41 2104-9357<br />

Fax: 55 41 2104-9368<br />

E-mail: amcham.curitiba@amchambrasil.com.br<br />

Goiânia<br />

Av. T-63 Monte Líbano Center - Sala 220<br />

Cep: 74230-100 - Setor Bueno - Goiânia GO<br />

Telephone: 55 62 4006-1150<br />

Fax: 55 62 4006-1157<br />

E-mail: amcham.goiania@amchambrasil.com.br<br />

Porto Alegre<br />

Prédio do CIEE - Av. Dom Pedro II, 861 - 8º andar<br />

Porto Alegre - RS<br />

Telephone: 55 51 3345-9892 / 3345-9841 / 3345-9867 / 3345-9855 / 3345-9831<br />

E-mail: amcham.portoalegre@amchambrasil.com.br<br />

Recife<br />

Rua Gonçalves Maia 207 - Boa Vista<br />

CEP: 50070-060 - Recife - PE<br />

Telephone: 55 81 3223-0000 / 3223-2603 / 3221-3452<br />

Fax: 55 81 3221-7470<br />

E-mail: amcham.recife@amchambrasil.com.br<br />

Ribeirão Preto<br />

Avenida Wladimir Meirelles Ferreira, 1525 - Ufficio Commerciale San Paolo - Salas 01 e 02<br />

CEP: 14021-630 - Ribeirão Preto - SP<br />

Telephone: 55 16 2132-4599<br />

Fax: 55 16 2132-4563<br />

E-mail: amcham.ribeiraopreto@amchambrasil.com.br<br />

Salvador<br />

Av. Tancredo Neves, 1632 - Ed. Salvador Trade Center - Torre Norte - Sala 1307<br />

CEP: 41820-020 - Caminho das Árvores - Salvador BA<br />

Telephone: 55 71 3480-3481<br />

E-mail: amcham.salvador@amchambrasil.com.br<br />

Uberlândia<br />

Av. Dr Jaime Ribeiro da Luz, 971 sala 46/48 - Santa Mônica<br />

CEP: 38408-188 - Uberlândia - MG<br />

Telephone: 55 34 2101-4100<br />

Fax: 55 34 2101-4107<br />

E-mail: amcham.uberlandia@amchambrasil.com.br


<strong>Brazil</strong>ian Agriculture Research Center (<strong>EMP</strong>RAPA)<br />

35<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

<strong>Brazil</strong>ian Agriculture Research Center (<strong>EMP</strong>RAPA), Grape and <strong>Wine</strong> National Research<br />

Center, Tropical Viticulture Experimental Station, PO Box 241, 15700-000, Jales, SP, <strong>Brazil</strong>,<br />

E-mail address: marcoafc@cnpuv.embrapa.br<br />

ACKNOWLEDGEMENTS<br />

The data for this study comes from many contributors. We acknowledge that those studies,<br />

reports, articles and graphics which are used in this study enrich the benefits to the reader.<br />

The work of USDA’s Foreign Agriculture Service’s Trade Offices in preparing multiple Global<br />

Agriculture Information Network (GAIN) reports and IBRAVIN, the <strong>Brazil</strong>ian <strong>Wine</strong> Institute,<br />

provided significant resources for the authors. We also wish to thank our colleagues from<br />

the World <strong>Wine</strong> Trade Group who provided insights and advice about the <strong>Brazil</strong>ian market.<br />

And finally we thank the International Trade Division of the Alcohol and Tobacco Tax and<br />

Trade Bureau for their support and advice.


APPENDIX I<br />

36<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Portaria No. 229 dated 17 June 2010<br />

Approved Oenological Practices<br />

(Google Translated from Portuguese Text)<br />

NOTE: These regulations subject to change after publication of this <strong>Report</strong>.<br />

MINISTRY OF AGRICULTURE, LIVESTOCK AND SUPPLY<br />

SECRETARIAT OF AGRICULTURE<br />

ORDINANCE No. 299 OF 17 JUNE 2010<br />

___________<br />

Note: Ordinance on Public Consultation<br />

___________<br />

SUBSTITUTE SECRETARY OF DEFENSE AGRICULTURE, MINISTRY OF AGRICULTURE,<br />

LIVESTOCK AND SUPPLY, in exercise of the powers conferred upon him by art. 10 and 42 of<br />

Annex I of Decree No. 7127 of March 4, 2010, in view of the provisions of Law No. 9784,<br />

January 29, 1999, and the provisions of Case No. 21000.006291/2007-02, decides:<br />

Article 1 Submit to public consultation for a period of sixty (60) days from the date of<br />

publication of this Ordinance, Project Instruction approving the List of oenological practices<br />

lawful.<br />

Paragraph 1. The Project Normative attachment is available on the website of the Ministry of<br />

Agriculture, Livestock and Supply: www.agricultura.gov.br, link law, submenu Ordinances<br />

on Public Consultation.<br />

Article 2 The purpose of this public consultation is to enable wide dissemination of the<br />

proposed Education Regulations, to receive suggestions of agencies, entities or persons<br />

involved.<br />

Article 3 The suggestions mentioned in art. 1, technically based, should be sent, preferably<br />

to the email address: dvd@agricultura.gov.br or to the address:<br />

Ministry of Agriculture, Livestock and Supply - MAPA<br />

Inspection Department Products Vegetable - DIPOV<br />

General Coordination of <strong>Wine</strong> & Spirits<br />

CGVB, Esplanada dos Ministerios<br />

Block D - Annex B - Room 333 - CEP 70043-900<br />

Fax 55 (61) 3224 8961<br />

Article 4 This Ordinance shall enter into force upon its publication.<br />

JOSE LEAL Guilherme TOLLSTADIUS<br />

* * *<br />

ANNEX<br />

In NORMATIVE PROJECT, OF, 2010.<br />

THE MINISTER OF AGRICULTURE, LIVESTOCK AND SUPPLY, using the powers conferred<br />

upon her art. 87, sole paragraph, item II of the Constitution, and bearing in mind the<br />

provisions Law No. 7678 of 8 November 1988, Decree No. 99066 of March 8, 1990, and the<br />

provisions of Case No. 21000.006291/2007-02, decides:


Article 1 Approve the list of oenological practices.<br />

Section I<br />

General Provisions<br />

Article 2 For purposes of this Instruction the following definitions apply:<br />

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I - oenological practice, process technology, physical, chemical or biological<br />

employee at any stage of or the wine derived from grapes and wine;<br />

II - the base wine, must or wine for making foam, which can be made:<br />

a) a base wine;<br />

b) for wine, or<br />

c) by cutting or assemblage of must or wine base or both.<br />

III - made of foam: alcoholic fermentation in airtight container in order to retain the<br />

carbon dioxide generated during fermentation.<br />

IV - tirage liqueur, prepared consisting of wine and sugar, and sugar can be replaced<br />

wholly or partly of grape must or concentrated must.<br />

V - expedition liqueur, prepared to be added after the sparkling wine made of foam,<br />

before the permanent closure of the bottle tightly closed or tank before bottling.<br />

a) the liquor shipment shall consist of wine and sugar, and sugar can be<br />

partially or completely replaced by grape must or concentrated grape juice or<br />

a mixture of both and, eventually be added to the wine distillate.<br />

Article 3 The products used in oenological practices shall comply with the conditions of use<br />

and the <strong>Wine</strong>making analytical specifications of the Codex International and its manufacture<br />

should be authorized by competent body.<br />

Article 4 will be a general requirement that the product used to use oenological practices<br />

admitted not change the sensory characteristics of the natural end product, except as<br />

specified this Instruction and in specific legislation.<br />

Article 5 shall be prohibited any manipulation or treatment intended to modify the<br />

characteristics original product in order to hide defects or changes.<br />

Article 6 For the purposes of oenological practices provided in this Instruction, which require<br />

use of additives or adjuvants technology or other substance of chemical or biological<br />

employed in producing the product should be observed the projected utilization for wine and<br />

the grape and wine, as well as the maximum allowed, according to specific legislation.<br />

Article 7 The oenological practices provided in this Instruction should be performed with the<br />

monitoring of the technical manager of the establishment.<br />

Article 8 For the purposes of oenological practices provided in this Instruction should be<br />

complied with the requirements of the International Organization of oenological practices<br />

International Vine and <strong>Wine</strong>, last edition, when they have not been established in this<br />

Instruction Standards.<br />

Article 9 The oenological practices provided for table wine shall apply by analogy to the base<br />

wine foaming and should be subject to the exceptions set forth in this Instruction and<br />

legislation specific.


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Section II<br />

Oenological practices allowed the grapes to Industrialization<br />

Article 10. Screening or selection of grapes is to:<br />

I - separate the berries unsuitable for winemaking, or<br />

II - classify grapes according to the degree of maturation.<br />

Article 11. Crush the film is to break the berries and crush them in order to release the<br />

must for:<br />

I - ensure the dissemination of the shell elements soluble in the wort, and<br />

II - to facilitate the multiplication of yeasts.<br />

Article 12. Stalk consists of separating the berries from the stalk in order to reduce the loss<br />

of color and alcohol in red wine and make it less rich and less undesirable astringent<br />

tannins.<br />

Article 13. Egouttage or exhaustion is to leave the crushed grape juice drain before<br />

pressing, for a wine with less substance coming from the grapes, skins and seeds.<br />

Article 14. Pressing is to press the grapes and the bark to extract the liquid part. The<br />

pressing can be performed in whole grapes or grape previously de-stemmed and crushed.<br />

Article 15. Maceration is to retain the solid part of the grapes in contact with the must in<br />

order to promote the dissolution of substances present in the film Berry.<br />

§ 1 is to keep traditional maceration for a period, the solid part in contact with the<br />

net, after stripping and crushing.<br />

§ 2 The carbonic maceration is to keep the whole grape in closed tank for a few days<br />

rich atmosphere containing carbon dioxide.<br />

§ 3 The hot mash is to heat the whole grapes or stalked or crushed by a period of<br />

time, before fermentation in order to quickly extract and materials more efficiently<br />

dyes and other substances in the film, being forbidden the heating steam injection<br />

Direct.<br />

§ 4 The Cold maceration is to cool the whole grapes or stalked or crushed before<br />

pressing or fermentation depending on the type of wine, in order to facilitate the<br />

extraction of constituents of the film and to increase the aromatic complexity and<br />

taste of wine.<br />

§ 5 The mash is to add sulfur sulfur dioxide or its salts to the mash with the<br />

sulphited must aim to produce for the development of the grape.<br />

§ 6 During the grape maceration enzyme may be added in order to facilitate the<br />

acquisition wort, débourbage operations, extraction of the pigments and polyphenols<br />

and extraction aromas and aromatic precursors Film Berry.<br />

Article 16. Enrichment involves increasing the sugar content of grapes harvested, until the<br />

desired level, through the following procedures:<br />

§ 1 Passificação:<br />

I - Natural: exposure of grapes on a surface or suspended during the time under the<br />

sun or in shaded naturally ventilated enclosure, and<br />

II - Forced: maintenance of the grapes in climate-controlled air circulation and dry or<br />

dehydrated, eventually warmed up.<br />

§ 2 selective screening is to select the grapes, from grapes and berries of grapes<br />

mature.<br />

§ 3 Cryo concentration is to partially freeze the grapes followed by a whole pressing<br />

the low temperature.


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Article 17. Antioxidant treatment is to add the antioxidant grape, with the aim of:<br />

I - For microbiological control by limiting or preventing the multiplication of yeasts<br />

and bacteria technologically undesirable, and<br />

II - to protect the subjects of the aromatic grape from the influence of oxygen from<br />

air.<br />

Section III<br />

Oenological practices allowed for Musts<br />

Article 18. Aeration or oxygenation is to add air or gas to the wort in order to reduce the<br />

content of phenolic compounds and increase the stability of the color of the wine.<br />

Article 19. Antioxidant treatment with antioxidants is to add the wine, in order to:<br />

I - get antiseptic;<br />

II - to protect the wine from the action of oxygen;<br />

III - select the yeasts;<br />

IV - to facilitate the débourbage;<br />

V - to promote the dissolution of anthocyanins;<br />

VI - to regulate and control the fermentation;<br />

VII - to protect the aromatics of the grape;<br />

VIII - to limit the formation of ethanal, during fermentation, and<br />

IX - to limit the formation of hydrogen sulfide and volatile thiols source fermentation.<br />

Article 20. Acidification is to increase the total acidity and reduce the pH of the must with<br />

the purpose of:<br />

I - to prepare balanced wines from the point of view of taste;<br />

II - to promote good conservation of biological evolution and wine;<br />

III - to promote the ripening process of the wine;<br />

IV - failure to correct the acidity due to natural causes, and<br />

V - For the production of acids during fermentation.<br />

§ 1 The acidification of the wort can be accomplished as follows:<br />

I - by cutting with higher acidity of musts;<br />

II - with the help of strong cation exchange resins or free form;<br />

III - by the use of chemicals or<br />

IV - for microbiological acidification.<br />

§ 2 The addition of the acidulant wort may also be aimed at reducing the level of<br />

calcium.<br />

§ 3 The use of inorganic acids for acidification.<br />

§ 4 The initial acidity of the wort should be increased by at most one point five<br />

grams of per liter of tartaric acid.<br />

Article 21. Deacidification of reducing the total acidity and increase the pH of the must with<br />

the purpose of:<br />

I - more balanced composition of wines from the point of view of taste;<br />

II - for stability with respect to the precipitation of potassium tartrate and calcium<br />

tartrate;<br />

III - to promote the biological deacidification, and<br />

IV - to obtain partial degradation of malic acid.


§ 1 The acidification may be carried out as follows:<br />

I - by the spontaneous precipitation of tartaric acid;<br />

II - by cutting with lower acidity of musts;<br />

III - by the use of heat treatment (cold);<br />

IV - the microbial degradation of malic acid;<br />

V - the use of chemicals, or<br />

VI - with the help of anion exchange resins.<br />

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§ 2 The acidified wine from wine must contain at least one gram per liter of acid<br />

tartaric.<br />

Article 22. Débourbage desborre or is the separation of suspended solids in order to:<br />

I - eliminate earthy and organic particles;<br />

II - to reduce the indigenous microbial flora, and<br />

III - reduce the amount of colloids and turbidity.<br />

Paragraph 1. The débourbage can be performed:<br />

I - static, by spontaneous sedimentation or with the aid of approved substances, or<br />

II - Dynamics, by filtration or centrifugation.<br />

Article 23. Clarification is the use of chemical and physical processes in order to obtain<br />

musts clear and stable.<br />

§ 1 Collage is the addition of substances to the wort, and provide clarity and<br />

stability, improve their gustatory properties.<br />

§ 2 Filtration involves passing the wort through appropriate filters to remove<br />

particles in suspension, with the help of substrates or not.<br />

§ 3 For the clarification of wine, may still be used substances with a view to:<br />

I - reduce or eliminate the amount of oxidized polyphenolic compounds or<br />

subject to oxidation;<br />

II - to reduce the astringency of the wort before fermentation;<br />

III - eliminate insoluble particles;<br />

IV - to facilitate the cleaning of the new wines by the partial precipitation of<br />

protein substances;<br />

V - to facilitate the bonding of wines;<br />

VI - to prevent protein breakdown and cuprous;<br />

VII - correct the sensory characteristics of wines from musts altered by fungi<br />

undesirable;<br />

VIII - to eliminate any contaminants, and<br />

IX - correct color of the grape.<br />

§ 4 enzymes may be used to help clarify.<br />

Article 24. Partial dehydration or concentration of the wort is to eliminate certain amount of<br />

water wine in order to:<br />

I - increase the concentration of sugar in the wort;<br />

II - to produce concentrated must, or<br />

III - For the enrichment of wine.<br />

§ 1 The partial dehydration or concentration of the wort can be obtained through the<br />

following procedures:


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I - reverse osmosis or reverse: the must pass specific membrane under the<br />

action of a pressure higher than the osmotic pressure of the wort;<br />

II - partial vacuum evaporation, vacuum heat subjected to sharp;<br />

III - partial evaporation under atmospheric pressure: evaporation system at<br />

atmospheric pressure, or<br />

IV - cryo concentration: partial freeze and elimination of the ice formed.<br />

§ 2 The concentration can not lead to a reduction of more than twenty percent of the<br />

initial volume or increase by more than two percent of the initial potential alcohol<br />

content wine.<br />

Article 25. Désulfitation is to eliminate or reduce the amount of sulfur dioxide initially<br />

added to the wort through the physical process in order to make it fit the development of<br />

different products and allow the fermentation of grape must.<br />

Article 26. Flotation involves injecting gas into the wort in order to drive the surface<br />

particles and microorganisms in order to:<br />

I - rapid clarification of the wort, with or without the addition of clarifiers;<br />

II - to reduce the population of native or indigenous microorganisms prior to<br />

fermentation to further growth of selected yeasts;<br />

III - make the clarification continuous and regulate the amount of material to be<br />

eliminated, and<br />

IV - carry out eventually oxygenation during clarification.<br />

Article 27. Enzymatic treatment is to add enzymes to the must, in order to help<br />

filtration and help to reveal the aromatic potential of grapes.<br />

Paragraph 1. The enzymatic treatment may be used as an aid to other oenological practices<br />

when provided.<br />

Article 28. Démetalization is to add substance to the must in order to reduce<br />

concentration of metals present in the must from contamination and, consequently, prevent<br />

defects caused by high levels of metals.<br />

§ 1 demethylation may be accomplished by the use, combined or not, glue and<br />

substances<br />

chemical.<br />

§ 2 The use of hydrochloric acid as an aid in the process of desmetalização is<br />

prohibited.<br />

Article 29. Mutage is to add alcohol wine alcohol, wine or distilled spirits alcohol simple wine<br />

or grape marc and lees or potable ethyl alcohol of agricultural origin, together or separately<br />

in the must or grape must in fermentation, in order to stop the fermentation and<br />

consequently, make products derived from grape and wine according to its standard<br />

identity and quality.<br />

Paragraph 1. The prevention of alcoholic fermentation can also be obtained by adding the<br />

mash the gas pressure.<br />

Article 30. Pasteurization involves heating the juice at a temperature and for a certain<br />

period in order to interrupt the activity of microorganisms and enzymes become inactive in<br />

the wort.<br />

Article 31. Treatment with an inert atmosphere is to create an inert atmosphere by adding<br />

gas to the wine, to keep them under air and therefore prevent oxidation or the development<br />

of undesirable microorganisms.


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Paragraph 1. It is forbidden the use of inert gases for the treatment of wines.<br />

Article 32. Control of malolactic fermentation is to add substance to the must in order to<br />

control the growth and activity of bacteria responsible for malolactic fermentation, as well<br />

as to reduce the rate of sulfur dioxide.<br />

Article 33. Correction or enrichment of musts is to correct the deficiency of the sugar<br />

content of the wine due to the unfavorable conditions of ripeness of the grapes for winemaking,<br />

through following:<br />

I - addition to the mash of sucrose (sugaring), alcohol, wine, grape must or rectified<br />

concentrated must concentrated, and<br />

II - partial dehydration of grape must.<br />

Paragraph 1. The fix provided in this Article shall respect the maximum limit established by<br />

legislation.<br />

Article 34. Alcoholic fermentation is to convert grape sugar into ethanol, carbon dioxide and<br />

secondary products aimed at making wine or derived from the grape or wine.<br />

§ 1 The alcoholic fermentation can occur spontaneously through natural yeast<br />

present in the film or the berries in the must or by treatment with selected yeasts,<br />

before or during fermentation, with the aim of:<br />

I - induce, regulate or accelerate the fermentation in the case of very slow<br />

vinification;<br />

II - to revive a stopped fermentation, or<br />

III - to facilitate the depletion of sugar.<br />

§ 2 can be added to the wort before or during fermentation, fermentation activators,<br />

with order to:<br />

I - to promote the initiation or completion of alcoholic fermentation and by<br />

nutrient enrichment growth factors or inhibitors by adsorption of yeast.<br />

II - accelerating the fermentation;<br />

III - decrease the formation of substances capable of combining with sulfur<br />

dioxide during the fermentation;<br />

IV - to prevent or treat the termination of fermentation, and<br />

V - to facilitate the completion of slow fermentation.<br />

§ 3 The introduction of air into the must or crushed grapes at the beginning of the<br />

fermentation can also be a practice adopted to encourage the growth of yeast and<br />

fermentation and enable transformation full of fermentable sugars.<br />

§ 4 The fermentation can be interrupted by physical process with the aim of<br />

generating a product with the remaining grape sugar. To do so will be allowed the<br />

following:<br />

I - heat treatment (heat or cold);<br />

II - filtration, and<br />

III - spin.<br />

Article 35. Procedure to limit the foam is to dominate the foaming during alcoholic<br />

fermentation of must by means of microbiological process, with physical or chemical<br />

order to:<br />

I - avoid losses by overflow, and<br />

II - to enable better capacity utilization of the fermentation tank.


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Article 36. Fermentation in wooden barrels is to conduct the alcoholic fermentation and<br />

eventually, the malolactic fermentation of wine in wooden containers with a capacity equal<br />

to or less than six hundred liters, with the aim of:<br />

I - to promote natural physical and chemical mechanisms that lead to the enrichment<br />

of wine substances provided by the wood;<br />

II - allow organisms to make the transformation of substances provided by the<br />

timber, and<br />

III - to encourage the migration of compounds from yeast for wine by autolysis, the<br />

more contact strait between the sediment and the wine.<br />

Article 37. Maceration post-fermentation maceration is to extend the end of alcoholic<br />

fermentation musts and can be enhanced with the use of heat, in order to:<br />

I - complete the release of constituents of grape skins resulting from the prefermentation<br />

maceration, and<br />

II - to improve the poly-phenolic structure and color of wines.<br />

Section IV<br />

Oenological practices allowed for <strong>Wine</strong>s<br />

Article 38. Acidification is to increase the total acidity and reduce the pH of wine with<br />

purpose of:<br />

I - to prepare balanced wines from the point of view of taste;<br />

II - promote good conservation of biological evolution and wine;<br />

III - to promote the ripening process of the wine;<br />

IV - failure to correct the acidity due to natural causes, and<br />

V - lower the pH of the wine.<br />

§ 1 The acidification of wine can be made as follows:<br />

I - by cutting wines with higher acidity;<br />

II - with the help of strong cation exchange resins or free form, or<br />

III - by the use of organic acids.<br />

§ 2 The addition of acidulant wine can also be aimed at reducing the level of calcium.<br />

§ 3 The use of inorganic acids for acidification.<br />

§ 4 The initial acidity of the wine can be increased by no more than two point five<br />

grams of per liter of tartaric acid.<br />

§ 5 When the must and wine are acidified increasing acidity should be a maximum of<br />

two and five tenths of grams per liter of tartaric acid.<br />

Article 39. Deacidification of reducing the total acidity and increase the pH of wine, with<br />

purpose of:<br />

I - For balanced wines from the point of view of taste;<br />

II - for stability with respect to the precipitation of potassium tartrate and calcium<br />

tartrate;<br />

III - to promote the biological deacidification, and<br />

IV - to obtain more biologically stable wines.<br />

§ 1 The acidification may be carried out as follows:<br />

I - spontaneously, by the precipitation of tartaric acid or malic acid<br />

degradation;<br />

II - by cutting wine with less acidity;


III - by the use of cooling;<br />

IV - with the help of ion exchange resins;<br />

V - the use of chemicals, or<br />

VI - a microbiological process.<br />

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§ 2 The acidified wine must contain at least one gram per liter of tartaric acid.<br />

Article 40. Clarification is the use of chemical and physical processes aimed at making wine<br />

clear and stable.<br />

§ 1 Collage is the addition of chemicals to wine in order to:<br />

I - complete spontaneous clarification;<br />

II - red wines soften eliminating part of its tannins and polyphenols, and<br />

III - to clarify cloudy wines.<br />

§ 2 Filtration involves passing the wine through appropriate filters or substrates,<br />

such as land boards and membranes to remove particles in suspension in order to<br />

provide clarity and stability organic wine to the elimination of microorganisms.<br />

I - the board should be made of suitable material, and<br />

II - the membrane must have a porosity less than two tenths of a micron and<br />

equal to or<br />

less than sixty-five hundredths.<br />

§ 3 is to transfer racking wine from one container to another to allow the separation<br />

of the liquid and solid deposits, therefore:<br />

I - separate the wine from the sludge and deposits from adding clarifiers;<br />

II - to separate the wine at the end of microorganisms or malolactic<br />

fermentation, or amendments caused by bacteria or yeast;<br />

III - to allow the implementation of all winemaking operations, processing and<br />

transport of wines, and<br />

IV - allow tartaric stabilization and separation of tartrate crystals.<br />

§ 4 For the clarification of wine, may still be used substances in order to:<br />

I - coagulation of glue added to the wine;<br />

II - to facilitate the cleaning of new wines by the partial precipitation of<br />

protein substances;<br />

III - to facilitate the bonding;<br />

IV - correct the sensory characteristics of wines from musts altered by fungi<br />

undesirable;<br />

V - remove any contaminants, and<br />

VI - to correct the color of wines.<br />

§ 5 may be used enzymes to aid clarification.<br />

§ 6 is prohibited clarification to correct the color of the wine when the wine that has<br />

led been subjected to the same practice.<br />

Article 41. Enzymatic treatment is to add enzymes to the product, with the aim of:<br />

I - to help reveal the aromatic potential of wine from the precursors from the grape;<br />

II - to facilitate the release of soluble constituents of yeasts;


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III - to improve the colloidal stability of the wine, and<br />

IV - reduce the rate of urea to prevent the formation of ethyl carbamate during<br />

aging.<br />

Paragraph 1. The enzymatic treatment may be used as an aid to other oenological practices<br />

when provided.<br />

Article 42. Démetalization is to add substance to the wine in order to reduce the content of<br />

metals present in wine from contamination and therefore prevent the defects<br />

caused by high levels of metals.<br />

§ 1 demethylation may be accomplished by the use, combined or not, glue and<br />

substances<br />

chemical.<br />

§ 2 The use of hydrochloric acid or other inorganic acid as an aid in the process of<br />

Démetalization is prohibited.<br />

Article 43. Tartaric stabilization is the adoption of procedures aimed at achieving stability<br />

tartaric wines. The tartaric stabilization can be achieved:<br />

I - by electrodialysis;<br />

II - with the aid of cation exchange resins;<br />

III - through cooling;<br />

IV - the use of chemicals, or<br />

V - the use of substances of biological origin.<br />

Article 44. I certify with wine is to supplement the storage container to compensate for the<br />

natural losses, in order to avoid contact with air the wine and, consequently, the oxidation<br />

or the development of aerobic microorganisms.<br />

Article 45. Biological stabilization is to use physical or chemical processes, together or<br />

separately, to kill or inhibit the growth of unwanted microorganisms and obtain<br />

biological stability of wine containing fermentable sugars in the bottle.<br />

Paragraph 1. May be used the following procedures:<br />

I - Pasteurization;<br />

II - filtration, and<br />

III - treatment with inhibitors of undesirable microorganisms.<br />

Article 46. Antioxidant treatment with antioxidants is to add the wine in order to<br />

protect it from the action of oxygen.<br />

Article 47. Malolactic fermentation corresponds to the degradation of malic acid present in<br />

wine prepared by the action of lactic acid-producing bacteria.<br />

Paragraph 1. The malolactic fermentation can be induced, aided or inhibited by the addition<br />

to wine substances authorized by specific legislation.<br />

Article 48. PEI is to add wine spirits from wine to wine, wine alcohol, alcohol potable ethyl<br />

alcohol of agricultural origin or simply distilled wine or grape marc or lees, in together or<br />

separately, aiming at the preparation of liqueur wine, wine and other beverages made<br />

alcohol derived from grapes and wine, according to their respective standards of identity<br />

and quality.


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Article 49. Flavoring is to add aromatic substances to wine and the grape and wine, when<br />

provided in the standard of identity and quality, with the aim of improving their sensory<br />

characteristics or to provide new features.<br />

Article 50. Court or assemblage consists in mixing different wines with the goal of producing<br />

wines physicochemical and sensory characteristics desired.<br />

Article 51. Bottling heat is to bottle the wine warmed and close the bottle immediately in<br />

order to promote stability and physical organic chemistry and wine<br />

elimination of oxygen.<br />

Paragraph 1. The heating temperature can not exceed forty-five degrees Celsius.<br />

Article 52. Aeration is to introduce air or specific gas to wine in order to reduce the content<br />

of iron and remove any traces of hydrogen sulfide in the wine.<br />

Paragraph 1. Removing the bad smell or taste due to hydrogen or sulfur derivatives<br />

can be done with the help of substance authorized by specific legislation.<br />

Article 53. Partial dehydration or concentration of the wine is to concentrate the wine by<br />

removing endogenous water in order to increase the alcoholic strength of wine.<br />

§ 1 The partial dehydration or concentration of the wine can be obtained through the<br />

following procedures:<br />

I - reverse osmosis or reverse: the must pass specific membrane under the<br />

action of a pressure higher than the osmotic pressure of the wort;<br />

II - partial vacuum evaporation, vacuum heat subjected to sharp;<br />

III - partial evaporation under atmospheric pressure: evaporation system at<br />

atmospheric pressure, or<br />

IV - create concentration: partial freeze and elimination of the ice formed.<br />

§ 2 It is prohibited to partial dehydration of wine when the wine that gave rise have<br />

been submitted the same practice.<br />

§ 3 The concentration can not lead to a reduction of more than twenty percent of the<br />

initial volume or increase more than two percent of the initial alcohol content of<br />

wine.<br />

Article 54. Maturation in wooden vessel is to pack the wine in wooden barrels<br />

appropriate, with a maximum capacity of six hundred liters (maturation), in order to:<br />

I - get a natural evolutionary process of wine, with the development of their<br />

characteristics sensory;<br />

II - to promote the physical and chemical mechanisms due to natural oxygen intake<br />

and the progressive substances provided by the timber, and<br />

III - to obtain physical-chemical stabilization of all or part of the wine.<br />

Article 55. Thinning is to put the wine in contact with wood during a period determined by<br />

the addition of wood chips of the species Quercus sp. With the aim of pass the wine,<br />

constituents from the oak.<br />

§ 1 The oak chips must meet the following requirements:<br />

a) be used fresh or roasted, without having sustained combustion;<br />

b) not be added to products to increase their natural flavor or their<br />

extractable phenolic compounds;<br />

c) has not undergone any chemical, enzymatic or physical, except the towers:


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d) provide particles having a size such that at least ninety-five per cent by<br />

weight are retained sieve with a mesh of two millimeters.<br />

§ 2 The use of oak powder.<br />

§ 3 The wines produced with the addition of pieces of oak wood may not present in<br />

designations for the labeling period of maturation or aging.<br />

Article 56. Dealcoholisation part is to eliminate a portion of wine ethanol.<br />

§ 1 dealcoholisation is prohibited for wines made from musts that have been submitted to<br />

practice of enrichment or correction of wine and wine provided partial dehydration,<br />

respectively, in the arts. 33 and 53 of this Instruction.<br />

§ 2 The alcohol content of wine can be decreased by no more than two percent by<br />

volume.<br />

Article 57. Dealcoholisation total wine is to eliminate ethanol from wine with the aim of<br />

de-alcoholised produce fermented grape.<br />

Article 58. Softening or sweetening of wines is to add the sweetener to wine order to obtain<br />

wines of varying sweetness from a dry base wine.<br />

Paragraph 1. For sweetening may be added to wine:<br />

I - sucrose in solid form;<br />

II - concentrated grape must;<br />

III - rectified concentrated must, or<br />

IV - the mixture of one or more products defined in items I, II and III.<br />

Article 59 maturation or aging in the bottle is to keep the wine in bottles stored in<br />

appropriate place, in order to keep the wine in contact with the warehouse to improve their<br />

sensory characteristics.<br />

Article 60. Carbonation is to add carbon dioxide to the wine or derived from the grape and<br />

wine aiming at the elaboration of sparkling wine, sparkling wine or other derived from the<br />

grape and wine that gasification is expected to default on their identity and quality.<br />

Article 61. Color correction is to add dye derived from the grape and wine, as provided for in<br />

its standard of identity and quality, aiming to strengthen its natural color.<br />

Section V<br />

Ooenological Practices Allowed For Sparkling <strong>Wine</strong>s And Aerated Semi-Course<br />

Article 62. Tirage is to introduce the bottle fermentation tank or in hermetically sealed<br />

(Autoclave) the base wine and liquor mixed with the circulation, in order to trigger the<br />

second fermentation with a view to making foam.<br />

Paragraph 1. To the mixture of base wine and liquor can be added tirage yeast, clarifier<br />

and activator of fermentation, together or separately, in order to facilitate the multiplication<br />

of yeasts and trigger the second fermentation.<br />

Article 63. Taking foam is to conduct the alcoholic fermentation of wine based on container<br />

tightly sealed bottle or tank fermentation, with the goal of developing sparkling wine<br />

sparkling or saturation pressure of carbon dioxide endogenous.


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<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

Article 64. Maturation in the bottle is to keep the bottles stored in order to encourage<br />

fermentation and keep the wine in contact with the deposit to facilitate fermentation for<br />

wine sparkling and sparkling.<br />

Article 65. Remuage is to cause the precipitation and gather in the bottle, the deposit<br />

formed during the making of foam, through the provision and operation of the bottle holder.<br />

Article 66. Disgorging is to eliminate the deposit collected on the seal of the bottle during<br />

remuage, in order to ensure the clarity of the sparkling wine or sparkling.<br />

Article 67. Clarification is required to ensure the clarity of the sparkling wine and sparkling<br />

wine. For clarification of sparkling wines and sparkling can only be used following,<br />

isobarometric conditions:<br />

I - racking;<br />

II - spin, or<br />

III - filtration.<br />

Article 68. Bottling isobarometric is to bottle the sparkling wine or sparkling prepared<br />

hermetically sealed in a tank or autoclave, with the possible addition of expedition liqueur.<br />

§ 1 In isobarometric bottling is forbidden to use carbon dioxide to counter.<br />

§ 2 The addition of expedition liqueur may increase the alcoholic sparkling wine in<br />

the<br />

more than half a percent by volume.<br />

Section VI<br />

Final Provisions<br />

Article 69. It is established within 90 (ninety) days for the necessary adaptations to changes<br />

compliance with this Instruction.<br />

Article 70. This Instruction shall enter into force upon its publication.<br />

WAGNER ROSSI<br />

D.O.U., 18/06/2010 - Section 1


APPENDIX II<br />

49<br />

<strong>Brazil</strong>ian <strong>Wine</strong> <strong>Market</strong> <strong>Report</strong><br />

MAPA MODEL FORMS – ANNEX III CERTIFICATE

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